Manufacturing
Capital Equipment Finance Leaders. At Manufacturers Financing Services, we are experts at evaluating your needs, including any credit liabilities, to custom.
| AUTOMOBILES |
| AUTO COMPONENTS |
| FMCG |
| MANUFACTURING |
| MEDICAL DEVICES |
| MSME |
Automobiles
India is a prominent auto exporter and has strong export growth expectations for the near future. In addition, several initiatives by the Government of India and major automobile players in the Indian market are expected to make India a leader in the two-wheeler and four-wheeler marketplace in the world. The Government of India encourages foreign investment in the automobile sector and has allowed 100% foreign direct investment (FDI) under the automatic route.
Road Ahead: The automobile industry is supported by various factors such as the availability of skilled labour at low cost, robust R&D centers, and low-cost steel production. The industry also provides great opportunities for investment and direct and indirect employment to skilled and unskilled labour. The rise in middle-class income and the young population will result in strong growth. India could be a leader in shared mobility by 2030, providing opportunities for electric and autonomous vehicles. The electric vehicles industry is likely to create five core jobs by 2030.
References: International Organization of Motor Vehicle Manufacturers, Media Reports, Press Releases, Department for Promotion of Industry and Internal Trade (DPIIT), IBEF.
Disclaimer: This information has been collected through secondary research and Infominer is not responsible for any errors in the same.
Auto Components
The Indian auto-components industry has experienced healthy growth over the last few years. The industry is expected to reach US$ 200 billion by FY26. Due to high development prospects in all segments of the vehicle industry, the auto component sector is expected to rise by double digits.
100% FDI is allowed under the automatic route for the auto components sector and employs as many as 1.5 million people directly and indirectly. A stable government framework increased purchasing power, a large domestic market, and an ever-increasing development in infrastructure have made India a favorable destination for investment. A cost-effective manufacturing base keeps costs lower by 10-25% relative to operations in Europe and Latin America.
Road Ahead:
The growing working population and expanding middle class are expected to remain key demand drivers. Reduction in excise duties in the motor vehicles sector will spur the demand for auto components. Over the next decade, newer verticals and opportunities for auto-component manufacturers will emerge which would need adaptation to change via systematic R&D to cater. The Indian auto-components industry is set to become the third largest in the world by 2025. Indian auto-component makers are well-positioned to benefit from the globalization of the sector as export potential increases in this sector.
References: International Organization of Motor Vehicle Manufacturers, Media Reports, Press Releases, Department for Promotion of Industry and Internal Trade (DPIIT), IBEF.
Disclaimer: This information has been collected through secondary research and Infominer is not responsible for any errors in the same.
FMCG
The urban segment is the largest contributor to the overall revenue generated by the FMCG sector in India. However, in the last few years, the FMCG market has grown at a faster pace in rural India compared to urban India. Semi-urban and rural segments are growing at a rapid pace and FMCG products account for 50% of the total rural spending. The Government has allowed 100% Foreign Direct Investment (FDI) in food processing and single-brand retail and 51% in multi-brand retail. This would bolster employment, supply chain, and high visibility for FMCG brands across organized retail markets thereby bolstering consumer spending and encouraging more product launches.
Road Ahead:
Rural consumption has increased, led by a combination of increasing income and higher aspiration levels. There is an increased demand for branded products in rural India. An increase in disposable income in rural India and low penetration levels in the rural market offer room for growth. A large base of young consumers who form the majority of the workforce increases the demand for household spending. Online portals are expected to play a key role for companies trying to enter the hinterlands. The Internet has contributed in a big way, facilitating a cheaper and more convenient mode to increase a company’s reach.
References: Media Reports, Press Information Bureau (PIB), IBEF.
Disclaimer: This information has been collected through secondary research and Infominer is not responsible for any errors in the same.
Manufacturing
Manufacturing has emerged as one of the high-growth sectors in India. Prime Minister of India, Mr. Narendra Modi, launched the ‘Make in India’ program to place India on the world map as a manufacturing hub and give global recognition to the Indian economy. India is on a path of becoming the hub for hi-tech manufacturing. The Government of India has taken several initiatives to promote a healthy environment for the growth of the manufacturing sector in the country.
Road Ahead:
Robust growth is estimated in the appliances and consumer electronics (ACE) market in India. Increasing global investments with positive government-backed policy support, increasing the share of the young working population will provide a competitive advantage for sectoral growth. Going forward, business leaders expect global demand to play a major role in the expansion of India’s manufacturing industry. Strategies adoption of “Digital transformation, backward and forward integration and collaborative competition will be key drivers for this sector.
References: Central Statistics Office, FICCI, Economic Survey of India, DPIIT, Media sources, Ministry of Skill Development and Entrepreneurship, IBEF.
Disclaimer: This information has been collected through secondary research and Infominer is not responsible for any errors in the same.
Medical Devices
The healthcare and medical device sectors have grown significantly in the last decade. There is a huge gap in the current demand and supply of medical devices in India and this provides a significant opportunity for manufacturing devices in India. India has a 75-80% import dependency on medical devices. The Government of India has recognized medical devices as a sunrise sector under the ‘Make in India’ campaign in 2014 and has allowed 100% Foreign Direct Investment (FDI) in the medical device sector in India.
Road Ahead:
The rising number of medical facilities will boost the demand for medical devices in the market. Opportunities to export, increasing demand, favorable policy support, and constant FDI inflows will play as key drivers. Notable trends in the medical devices sector like using big data and robotics to gather patient vital signs, along with other observations from devices make this sector more technology-oriented, opening ways for startups and funding propositions.
References: Government Websites, Press Releases, Media Reports, IBEF.
Disclaimer: This information has been collected through secondary research and Infominer is not responsible for any errors in the same.
MSME
The Micro Small and Medium Enterprises (MSMEs) sector is a major booster to the socio-economic development of the country and contributes about 29% towards the GDP through its national and international trade. The sector has also contributed immensely with respect to entrepreneurship development especially in semi-urban and rural areas of India. MSMEs are being encouraged to market their products on the e-commerce site, especially through Government e-Marketplace (GeM), owned and run by the government.
The Ministry of MSME runs numerous schemes targeted at providing credit and financial assistance, skill development training, infrastructure development, marketing assistance, technological and quality upgradation, and other services for MSMEs across the country.
Road Ahead:
The guided regulatory framework, Opportunities to export, favorable policy support will play as key drivers. The Government of India has envisioned doubling the Indian economy to US$ 5 trillion in five years. In order to achieve this goal, career opportunities for the young population have been generated and MSMEs have the potential to serve as a key employment generator. Therefore, the government has taken up the promotion of MSMEs in order to create new jobs in the sector.
References: Government Websites, Press Releases, Media Reports, IBEF.
Disclaimer: This information has been collected through secondary research and Infominer is not responsible for any errors in the same.