According to the US National Association of Manufacturers, the US represents more than a fifth of the global manufacturing industry, with China producing 15% and Japan 12% of manufactured products. The US manufacturing industry’s output is in excess of $1.5 trillion worth of products, more than 11% of the country’s gross domestic product. The industry represents close to 19 million US jobs, and employs almost 10% of the country’s workforce.
The top nations in the manufacturing industry are expected to change over the next five years, according to Deloitte’s 2010 Global Manufacturing Competitiveness Index. Among those forecast to gain market share are Thailand, Poland and Mexico. India, China and the Republic of Korea are expected to continue to loom large on the global manufacturing market through 2015. Countries expected to see a degree of competitive decline include the US, Germany and Japan.
According to a study by global management consulting firm McKinsey and Company, the manufacturing sector in India could grow six-fold to US$ 1 trillion, by 2025. The rising demand in the country and the aspirations of multinational companies (MNCs) to establish low-cost plants in India, are seen as reasons for this possible growth. Up to 90 million domestic jobs could be created by that time, with the sector generating about 25–30 per cent of the country’s gross domestic product (GDP). India’s manufacturing sector is vital for its economic progress. Its contribution to the GDP is 16 per cent, with the potential to grow more.
Deloitte’s global index for 38 nations (2013) ranked India as the fourth most competitive manufacturing nation. The country’s economy saw massive expansion in the period 2006–2011, attaining a five-year Compound Annual Growth Rate (CAGR) of 7.8 per cent.