The Study Of Manufacturing In Indian Economy:Its Functions,Problems And Causes

Since the industrial revolution,no country has become a major economy without becoming an industrial power.And the manufacturing constitutes more the sixty percent of industry GDP,to some extent,manufacturing plays a mayor role during the industrialization.Economic growth means the successful transformation of economic structure,manufacturing still plays a mayor role in the economic structure transformation.India is a mayor developing country in the world,and manufacturing also plays a key role in its economic development.However,India’s manufacturing is seriously lagging behind.Compared to other developing countries or the world average, India’s manufacturing share of GDP,manufacturing output,manufacturing employment,manufacturing export are under performed.The India economy is service-oriented.and the manufacturing seems to be "collapsed".This paper focus on India’s under performed manufacturing,summarized the general rules of the world manufacturing development,and demonstrate the manufacturing is a mayor driver of economic growth;then,the paper describe the current situation and problem of Indian manufacturing,mainly from manufacturing share of the economy,manufacturing output,manufacturing growth and manufacturing trade.then.the paper analysis the causes of these problems,the causes mainly comes from the labor market,financial market,land market,product market,infrastructure and the industrial policy.The paper also gives some advises to solve these problems.The last part is the conclusion.The paper shows that manufacturing share of GDP accounted for inverted "U"type with per capital income,the turning point of the inverted"U"type is when the per capital income reaches ten thousand international dollar,and the manufacturing share accounted for between30%and40%.In order to develop Indian economy and promote industrial restructuring,manufacturing is a inevitable choice.The factors that affect the manufacturing are not mutually isolated,the failure of labor market is the direct factor that hinder the development of manufacturing.Indian manufacturing have not absorb enough demographic dividend from its huge labor force.India’s industrial policy and democracy system are the fundamental elements that affect the manufacturing.