KPMG: India must expand manufacturing to $7.5 trillion by 2047
India's manufacturing sector needs to reach $7.5 trillion by 2047, according to a KPMG report.
Right now, growth is much slower (just 7.9% annually), which means if nothing changes, we'll fall short by about $4.8 trillion.
Basically, India needs its manufacturing sector to expand nearly 15 times, from around $501 billion in 2025 to $7.5 trillion by 2047.
Manufacturing productivity key, 70% need overhaul
The report points out that boosting productivity is key: companies with higher productivity recorded more than 50% higher profitability growth and nearly double the market capitalisation growth compared to others.
But more than 70% of enterprises still need major changes in their operations.
Plus, a sustained 30% improvement in productivity could contribute nearly 35% of India's future manufacturing output.