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Despite Modi's 'Make in India' push, the share of manufacturing in GDP has remained stagnant


In 2011,
when his nephew Deepak Sharma sought career advice, Ramniwas (who goes by one name), a former production line worker at Maruti Suzuki’s manufacturing plant in Manesar, Haryana, asked him to enrol for a diploma course in one of Haryana’s polytechnic institutes.
“Technical line mein bohot scope hai [There are many opportunities for anyone with a technical education]
,” he told the 16-year-old
.
Sharma had just completed high school that year, in Guhna, an agricultural village in Haryana’s Kaithal district, about 200-km from Manesar, an industrial hub that is part of the larger National Capital Region of Delhi.

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Once A Ray Of Hope, Jobs In India's Manufacturing Sector Are Now A Pipe Dream

Once A Ray Of Hope, Jobs In India's Manufacturing Sector Are Now A Pipe Dream
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India hasn't deindustrialized, but stagnated


India hasn’t deindustrialized, but stagnated
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Deindustrialization refers to a decline in the share of the manufacturing sector in GDP and employment. Countries typically deindustrialize once they reach an advanced stage of industrialization. Given its modest industrial performance, has India then deindustrialized prematurely?
In an article in Economic and Political Weekly, Judhajit Chakraborty of Michigan State University and R. Nagaraj, formerly of Indira Gandhi Institute of Development Research, show that India’s industrialization has stagnated for three decades now. The all-India ratio of manufacturing output to GDP has remained unchanged since 1991. The employment share of the sector also remained more or less constant during 1991-2011.

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