India's vast domestic market and relatively low-cost workers with advanced technical skills will make it a manufacturing powerhouse within 5-10 years, according to a study by Boston Consulting Group. Already, more and more multinationals are setting up operations in India: ABB, Honeywell and Siemens in electrical and electronic products; Cummins, DaimlerChrysler, and Toyota in auto components and engineering; and Degussa as well as Rohm and Hass in specialty chemicals. All these operate in skill-intensive industries requiring advanced technical expertise -- areas in which India is likely to become a primary sourcing and manufacturing base. In fact, high skill sectors account for almost 40 per cent of manufacturing output of India.
India is undergoing structural transformation with manufacturing increasing its role in the Indian economy. Manufacturing now accounts for about a fifth of Indias GDP, contributes 75 per cent of exports, over 50 per cent of FDI and employs 11 per cent of t ...more