<p>There has been considerable disquiet among Indian policymakers and analysts at the poor performance of the manufacturing sector. The share of manufacturing in GDP is much lower in India than in China and has been almost constant over the past decade or so. The lack of dynamism of the manufacturing sector is held responsible for the slow growth of employment and also of exports as a result of which the trade deficit has ballooned. The current Indian government seeks to give a significant push to this sector and has coined the phrase “Make in India” to attract foreign entrepreneurs to the manufacturing sector.</p>
<p>This Policy Brief analyses the Indian manufacturing sector in the context of the performance of the sector in developing countries in general and in BRICS countries in particular. It then seeks to identify a strategy for raising the growth rate of the sector.</p>