Manufacturing has played a vital role in economic growth and development of countries. In the last few decades, India has emerged as one of fastest growing economies. It even contributes to jobs at all levels. We can say it is an important employment generator. All sectors like service, agriculture, social, manufacturing provide a work force to all. Hence, this is a key factor to pull people above the poverty line. The manufacturing sector in India is progressing due to its location also. So how will be manufacturing in a post COVID world?

The country’s manufacturing sector may record deterioration in business conditions in the post COVID-19 world. The major reasons could be less demand, increasing rate of unemployment and acute shortage of workers as they have returned to their home states and these workers are in fear and they will need time to get back and start a new way.


As we know, short term measures taken during global crises lead to changes for decades. The COVID-19 pandemic hit manufacturers in an unexpected and unprecedented manner. It is for the first time manufacturing, demand and supply of workforce are at the same time.  Social distancing is pressure on manufacturers as half workforce is not available.

The pandemic has brought businesses and daily human activities around the world to a standstill. Manufacturing sector due to lockdown is affected all over the world. As per a report by the World Economic Forum (WEF) factory activity contracted sharply across most of the Asian countries in March like China, Japan, South Korea. Though China is known as the Manufacturing Giant then the current crisis has led to the disruption in the supply chains for several industries which had their base in the country.

Plans to Overcome the Situation

Pic from Indian Express

Plans are made by Indian government as well. And in recent news, approx. 1000 firms are planning to shift their production from China to India. This is an opportunity for India to rise up as a manufacturing hub.

In March the government even notified three schemes with total incentives of 48000 crores. But as India looks as a lucrative option, firms have to diversify the supply chains and have to overcome certain hurdles like presently we have to overcome this economic shock caused due to this pandemic as manufacturing has been resumed in various sectors as manufactures still face various issues. Labor shortage will be the biggest hurdle as the workers have returned home due to lockdown. A report by the World bank said the lockdown has affected 40 million internal migrants. So getting this labor will be a huge task.

Secondly, India needs to improve its infrastructure in order to support manufacturers and industries to set up their plants in the country. Also enhance the facilities that they provide like manufacturers expect better transport facilities and logistical availabilities for stocking as well.

Though overcoming these hurdles is a time taking process for the government but if done well it could reap huge benefits for India in coming years.

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