The Indian manufacturing sector grew at about 7.7% in 2017 and contributed around 16% to India's GDP. This only shows that India is on its way to becoming the third-largest economy in the world by 2030. The government aims to increase the share of the manufacturing sector to 25% of the GDP by 2022 through several policy reforms and budget allocations. With the assurance of good prospects, it is undoubtedly the right time to start your own manufacturing business.
Take a look at some of the manufacturing businesses that are going to prosper in 2019.
1. Furniture-making business
The demand for multi-purpose furniture is growing, and the industry is likely to grow to $27 billion by 2022. A large number of urban dwellers, an increase in spending power, and high spending capacity result from this. So, a corpus of around Rs. 30 lakh will give you a head start as a furniture manufacturer. Hiring a team of efficient furniture designers as well as a market research team will go a long way in helping you produce good furniture that sets you apart from your competition.
2. Leather goods business
Leather goods manufacturing is one of the most promising fastest growing industries in India at present. With the Indian leather sector at $17.85 billion, it's easy to see how setting up a leather goods business can benefit you. The domestic leather market is expected to double in the next five years, and India accounts for 12.93% of the world's leather production. This improves your prospects of setting up a leather footwear or clothing company to export your products. Making leather goods will require a sizeable investment, along with specialised machinery, an inventory of raw materials and a warehouse to store finished products. To help finance these costs, you can make use of a business loan.
3. Organic and healthy food business
India produced around 1.35 million metric tonnes of certified organic products in 2015-2016. This included sugarcane, oilseeds, cereals and millets, cotton, pulses, medicinal plants, tea, fruits, spices, dry fruits, vegetables, coffee, etc. Growing awareness about eating healthy and India's rural culture and climate make this a profitable industry to venture into. According to estimates, the market for organic food will grow by 25%–30% by 2020, giving you all the more reason to consider this sector.
4. Garment embellishment business
The textile and apparel sector contributes 4% to India's GDP and accounts for 15% of the country's export earnings. Besides, India gets an edge over the other manufacturing countries owing to its value chain for textile production, from natural fibre production of yarn, fabric, and apparel. The rising demand for 'Make in India' clothing, reflecting India's heritage, opens up opportunities for your business in garment embellishment. Setting up a unit staffed with skilled embroiderers and zardozi artists is one option. You can start small by renting a small warehouse or garage space to set up your business.
Additional Read: Types of Business Loans
With excellent prospects in both the Indian and international markets, setting up a manufacturing business in these sectors is sure to help you reap good results in 2019.
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