The Indian Government launched the initiative ‘Make in India’ in 2014 to encourage companies to manufacture their products in India by reducing bureaucratic barriers. What is the effect for the Metallurgy in India?
The Metallurgy in India faced big changes in the 90s with the onset of the liberalization and open market policies. With the new form and sources of investments, the infrastructure pertaining to the industries was altered. More and more efficient and technologically advanced methods improved the production processed and in turn the output of the industry increased along with the quality of the products. The Metallurgy in India is growing with the innovative techniques as it is helping the product market to enlarge. It has recorded a strong 19.8 % expansion in 2011 to touch USD 141.9 billion and USD 305.5 billion by 2015. Production volumes have also been growing steadily over the years: during the period 2007-2011, it registered a CAGR of 5.2 %.
As a supplier for the Indian Manufacturing Sector, the Metallurgy in India counts to the backbone of the Indian Economy. As it fuels growth, productivity, employment, and strengthens Agriculture and Service Sectors, the Indian Government pushes these industries by several initiatives, mainly by the ‘Make in India’ campaign. Aims are to make it competitive with international quality standards, efficiency and manufacturing facilities.
One example of industries pushed by the Government out of 25 is the Aerospace Sector. It is closely connected to the Metallurgy in India as metals like titanium, aluminum, stainless steel, and nickel need to be provided for its manufacturing. As Indian manufacturing capabilities mature over the years and the demand in general increases, the country is further poised to become a large Commercial and Defence Aircraft Market. The Indian Aerospace Industry is one of the fastest-growing Aerospace Markets in the world with an expanding consumer base comprising airlines, businesses and High Net Worth Individuals. The rapid growth of this industry has attracted major global Aerospace companies to India. All segments in the Aerospace Industry, including civil and military Aviation and Space, are showing a significant level of growth. This growth holds great potential for the Metallurgy in India as well, as the demand for metals is increasing with it.
Besides the positive effect from growing Manufacturing Industries, the ‘Make in India’ program includes initiatives to facilitate investment, foster innovation, protect intellectual property, and build best-in-class manufacturing infrastructure. Therefore wide-ranging tax and banking reforms as well as reductions in regulations were achieved. For the Metallurgy in India it means an attractive investment environment.
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