Original Article

Self-Reliant India: A Role of Manufacturing and its effect on Employment Generation in making India

 

 

INTRODUCTION

Manufacturing occupies a central role in the economic architecture of both developed and developing nations. It is among the most dynamic and value-creating sectors, converting raw resources into usable products through the effective use of labor, technology, and capital. Beyond its direct contribution to national income, the sector drives progress across multiple areas. From an economic standpoint, manufacturing functions as a multiplier. Each unit of value produced stimulates additional economic activity in complementary sectors such as transport, energy, and infrastructure. This interconnected chain promotes industrial growth, regional development, and higher levels of national output. In addition, manufacturing provides extensive employment opportunities, absorbing both skilled and semi-skilled labor, which contributes to reducing unemployment and ensuring social stability. The rise of small and medium enterprises (SMEs) in manufacturing further diversifies local economies, strengthens entrepreneurship, and enhances competitiveness.

In the Indian context, the manufacturing sector is widely regarded as a key instrument for modernization and sustainable growth. Initiatives such as Make in India and the Production Linked Incentive (PLI) schemes have been launched to strengthen domestic manufacturing capacity, promote self-reliance, and attract global investments. With the ongoing adoption of automation, artificial intelligence, and data-driven manufacturing systems, the sector is steadily progressing toward intelligent and environmentally sustainable production models.

 

Importance of Manufacturing for Indian Economy

·        Drives economic growth: Manufacturing is a cornerstone of the economy, contributing significantly to the GDP by converting raw materials into higher-value finished products.

·        Creates jobs: It provides employment for millions of people, helping to reduce unemployment and poverty and moving workers from agriculture to secondary and tertiary sectors.

·        Promotes export and foreign exchange: Exporting manufactured goods expands trade and brings in much-needed foreign currency, which strengthens a nation's financial position.

·        Reduces regional disparities: Establishing industries in rural and backward areas can help reduce economic inequalities between different regions.

Thus, Indian Manufacturing sector is the backbone and provides resilience to ward off global economic shocks and adversities of the national economic structure and acts as a bulwark for Indian economy.

 

Objective

1)     To explore the role of Manufacturing in making India Self- Reliant.

2)     To study the impact of Manufacturing on employment generation in making India Self- Reliant

3)     To identify the factors responsible for employment generation and its effects.

4)     To find out the problems faced by the Manufacturing for employment generation.

 

Literature Review

The manufacturing industry has consistently played a pivotal role in India's path to economic growth. Throughout the years, economists and scholars have analysed its effects on job creation, export expansion, and industrial advancement. The existing literature offers a varied perspective — one that applauds advancements while acknowledging ongoing obstacles that influence the sector's overall effectiveness.

The National Council of Applied Economic Research (NCAER, 2022) highlighted that manufacturing contributes substantially to India’s Gross Value Added (GVA) and plays a key role in the country’s export competitiveness. According to its findings, industries such as automotive, textiles, pharmaceuticals, steel, and machinery have been at the forefront of India’s industrial output. However, the report also acknowledged that outdated infrastructure, complicated regulations, and skill shortages remain major bottlenecks that prevent consistent growth across states and sectors.

 

Research Methodology:

Random Sampling: In this sample design, we have selected random students from various classes and streams to answer the questionnaire independently.

Research Analysis Tools: The data collected through the questionnaire is further converted in pie/graphs via statistical treatment i.e. MS-EXCEL. The research and statistical tools used in this study are ANOVA, T test, Chi Square. ANOVA & T test, Chi Square was carried out to find the variance in the responses and to test the hypothesis.                                                                 

 

Data Collection

Primary Data: Primary data was collected in the form of questionnaires from various Students.  100 respondents filled the questionnaires. 

Secondary Data: Secondary data collected from various sources like journals, research papers, websites, newspapers and magazines etc.

 

Data Analysis

The primary data analysis was done using various parameters for the analytical study of Self-Reliant India: A Role of Manufacturing and its impact on Employment Generation in making India. 

 

Out of 20 respondent, 30% respondent strongly agree and 30% agree and 25% are neutral that economic growth of a country is well known from the contribution of manufacturing sector for making India self-reliant.

 

Out of 20 respondent, 40% respondent strongly agree and 40% agree and 20% are neutral with manufacturing contributes a lot to the economy.

 

Out of 20 respondent, 50% respondent strongly agree and 35% agree and 15% are neutral with manufacturing play’s important role in industrial development.

 

Out of 20 respondent, 30% respondent strongly agree and 30% agree and 30% are neutral and 10% disagree with is manufacturing labor intensive.

 

Out of 20 respondent, 15% respondent strongly agree and 45% agree and 40% are neutral with the promotion of manufacturing is the solution of socio-economic problem of the developing countries.

 

Out of 20 respondent, 20% respondent strongly agree and 35% agree and 40% are neutral and 5% disagree that main reason for the unemployment is scale of manufacturing sector in region.

 

Out of 20 respondent, 15% respondent strongly agree and 30% agree and 40% are neutral and 15% disagree with the promotion of manufacturing increases job opportunities in the region.

 

Out of 20 respondent, 15% respondent strongly agree and 30% agree and 45% are neutral and 10% disagree that manufacturing base for making equal distribution of wealth

 

Out of 20 respondent, 45% respondent selected above all and 35% increasing income and 25% benefit the poor and vulnerable.

 

Suggestions

1)     It is important to improve the potential of Indian Manufacturing’s to supply good quality products to make India Self-Reliant.

2)     To remain acceptable in the market, manufacturing need to be adaptable with changing market deviation and variable demand scenarios to make India Self-Reliant.

3)     Engraving and support will also be needed to lead to the positive significance associated with certain Indian products and assess negative significance that can be removed to make India Self-Reliant.

 

Limitations

1)     The main constraint related to our research is the ‘TIME’ limitation.

2)     Stronger evidence of limiting factors is population.

 

Conclusion

Manufacturing is more than an industrial process—it is the engine that powers economic transformation. It strengthens the foundation of national economies, supports exports, and drives inclusive growth by providing jobs and technology-driven progress. Focus to be given on transfer of information and skill enhancement to all workers who will work for growing economy. There is a need to upgrade infrastructure utilities or any enterprise to run its operations successfully and make an India Self-Reliant.

  

ACKNOWLEDGMENTS

None.

 

REFERENCES

https://www.ibef.org/industry/manufacturing-sector-india

https://dimerco.com/manufacturing-in-india-opportunities-and-challenges/

https://www.drishtiias.com/daily-updates/daily-news-editorials/the-rise-of-indian-manufacturing-sector