Experts were concerned that India should focus more on its service sector and not compete with China’s manufacturing dominance in the world. A recent report said India hit a 16-year high in manufacturing because of the COVID-19 breakout, which helped India get orders from the world for manufacturing starting in October 2020.
All three categories (consumer, intermediate, and investment goods) are showing good signs of growth; both domestic orders and international orders helped India hit a 16-year high in terms of manufacturing, and export orders reached a 9-month high.
This trend is also generating employment in the market, where a source said that for the first time in several months, manufacturing plants are hiring employees and generating employment in the nation, giving signs of growth.
However, the input cost is increasing in manufacturing because of the increasing cost of raw materials like cotton, steel, and iron, which is affecting manufacturers. Still, nobody wants to lose customers, which is why you will rarely see price hikes in the market.
Despite inflation concerns, the manufacturing sector is optimistic about the manufacturing sector, though according to the critics, giving China competition will not be easy and the government will be involved in the manufacturing war between India and China. The service sector, on the other hand, is active and growing at its own pace, as many new offices are built in India by multinational companies.