The survey respondents represent a mix of companies engaged in exports with varied technology and human capital requirements.
India Inc is optimistic on the prospects of the economic growth in the next 12 months, says a survey report titled "by the FICCI-PwC India Manufacturing Barometer 2019: Building Export Competitiveness".
It foresees faster sectoral growth and expects that the future growth of the manufacturing sector will be driven by export demand.
"As global trade has changed significantly in the last few years with new trade routes based on global value chains (GVCs), we need to provide Indian exporters the opportunity to contribute to align with these global value chains," said Puneet Dalmia, chairman, FICCI Manufacturing Committee and Managing Director, Dalmia Bharat Group.
As per him, there are a number of sectors where India can be truly a global leader, and aded India can globally lead in exports in number of sectors like textiles, automotive, chemicals, leather, metals and many more such areas.
The FICCI-PwC India Manufacturing Barometer survey was carried out from July to October 2018. The profiles of the personnel surveyed included chief executive officers, chief financial officers, chief operating officers and heads of strategy from the Indian manufacturing sector.
The survey respondents represent a mix of companies engaged in exports with varied technology and human capital requirements. Large as well as medium-scale organisations were included in order to gain a balanced viewpoint on manufacturing and the export competitiveness of India's manufacturing sector.
The sample includes companies that contribute approximately 12 per cent to the manufacturing GDP of the country from various sectors, namely, automobiles and auto components, chemicals, electrical machinery, food processing, leather, pharmaceuticals and textiles.
Most of the respondents were upbeat and confident about India's positive growth performance. Most also believed that India has the potential to grow at an average rate of 7 per cent or more in the next 12 months. This is aligned with the projections of international development agencies such as the World Bank Group and the IMF.
Fifty-eight per cent of the respondents believe that their sector would grow faster by at least 5% in the coming 12 months.
The respondents contend one of the key reasons for faster growth is the focus on Ease of Doing Business and introduction of reforms such as GST that are opening new vistas for investments across the country. In the past, the manufacturing sector relied on the domestic market as the primary source of revenue.
The survey revealed the growing importance of exports to manufacturing companies in the future, with a focus on a good mix of parts - component trade along with end product trade, and the imperative to strategies for both types. Further, India Inc seems to have begun placing greater emphasis on technology integration, including a renewed focus on R&D and innovation.
To cement India's status as a global export destination, India Inc expects the government to focus on business ecosystem reforms and the industry's integration with global value chains, it added.