India has undoubtedly become one of the fastest growing economies in the world over the last two decades wherein the manufacturing sector has contributed significantly. India’s manufacturing sector, which accounts for around 16 per cent of the country’s gross domestic product (GDP), is a very vital component of the development model while ensuring sustainability of the entire economy as it facilitates adequate employment. India’s share in the global manufacturing pie is around 1.8 per cent.
Driven by a robust pick in new orders and intense purchasing activity, India’s manufacturing sector registered the fastest growth in last five months. The HSBC India Manufacturing Purchasing Managers’ Index (PMI) – a measure of factory production – stood at 53.7 in November 2012, up from 52.9 in October 2012, indicating an improvement in the overall health of the Indian manufacturing sector.