Indian economy is mainly based on agriculture. Manufacturing sector lends another prospect for the people involved in agriculture to shift to a reasonably higher income zone. This sector acts as a backbone for the agricultural and service area. Internationally, the manufacturing networks have significantly improved and the trade barriers have vanished.

In 1990, after the opening of liberalization, privatization and globalization, the manufacturing sector has considerably risen in the long-ago. Globalization has hugely contributed to the Indian manufacturing sector. As this division is serious in improving the efficiency of the Indian workforce, it also serves as an impending employment sector.

The manufacturing sectors deal in textiles, drugs, chemicals, machines, electrical products, printing and packaging, automotive components and several others. The manufacturing sector of India has been continuously showing an expansion pattern and has extensively contributed in the GDP of India. However, Indian manufacturing goods are getting rigid competition from the markets of China, Taiwan and Korea. The goods from these Asian nations are greatly in demand worldwide. The buyers of the low cost export goods have shifted to Chinese products. Even the domestic markets are also concentrating on the cheap Chinese goods.

India is not at par with the international standards of the manufacturing goods. The bottlenecks in this sector affect the economy directly. The overall development of the country is hindered because of:

1. Improper utilization of technology and resources, 2. Inadequate infrastructure, 3. Bureaucracy and expensive financing, 4. Overstaffed functioning of the manufacturing units

The manufacturing associations must mend the aberrations to secure its worldwide market again. The focus must be laid on eliminating these unwanted factors by providing quality education, improving the standards of vocational studies, increasing the investment quotient in research and development, ensuring fair competition, improving urban infrastructure and support of SMEs.

However, the FICCI (Federation of Indian Chambers of Commerce & Industry) survey has predicted the development of manufacturing sector in the quarter of April to June this year. The demands of the manufacturing products have risen in the international market. But the survey also states the Chinese manufacturing units like leather, textile and chemicals are having an edge over the Indian items. The largest employment generating sector in India has bleak chances of continuing the exports and hence, many units are withdrawing themselves from the export market. Therefore, FICCI warns about the contradiction in the growth of manufacturing units and calls for an direct policy action.