In order to maintain a sustained Indian economic growth of 9-10 percent per annum, a joint study carried out by the industry body Associated Chambers of Commerce & Industry of India (ASSOCHAM) and EY have said that the government should focus more on ways to push manufacturing sector growth and it is crucial that the sector grows steadily at 14–15 percent per annum over the next three decades.
The joint report titled 'Sustaining India's growth by accelerating manufacturing' has stated that even though rollout of the Goods and Services Tax (GST) regime has addressed several regulatory issues, state governments must look into the issues like bureaucratic obstacles, obstructive regulations and policies to boost manufacturing sector. Adding further, it noted that manufacturing sector in each Indian state and union territory (UT) has the potential to grow either directly by setting up new industries or by creating ancillary facilities, infrastructure and necessary forward-backward linkages to existing ones.
The ASSOCHAM-EY study further said that for states, the best way to grow is to focus on industries where a particular state has competitive edge over others in terms of raw material availability, demand, user industries, logistics and availability of skilled manpower, besides geographical location. It also said that the government's Make in India initiative will help elevate country's manufacturing sector as it aims to increase share of manufacturing in the GDP to 25 percent from current 16 percent and to create 100 million new jobs by 2022.