Packaging Economic Growth in India

Manufacturing is expected to be a major driver of economic growth in India – especially since the launch of Prime Minister Narenda Modi’s new campaign, “Make in India.” Through the campaign Mr. Modi aims to accelerate progress toward a new era of high-quality Indian manufacturing and transform the country into a global manufacturing hub. “Make in India” is directed at developing the market and encouraging global investments, leveraging public-private partnerships and initiatives that improve the ease of doing business in India.

The Indian economy is expected to grow at 6.4% this year, and as it continues to return to higher single digit growth; manufacturing offers significant opportunities for job creation and economic growth. Among the many advantages of manufacturing in India are cost competitiveness and a sizeable working age population, but according to Barron’s, a “disproportionate share of labor works in agriculture, which contributes ~15% to GDP. Services, which account for 60% of GDP, only employ one-quarter of the labor force.” This drive to grow manufacturing will employ more workers, contribute to the rise in disposable income and drive lifestyle changes for the average Indian citizen.

Strong economic growth also indicates potential for an increased demand in higher-quality packaged goods. India is the world’s sixth largest packaging market, valued at USD $24.6 billion with a growth rate of more than 15% annually – more than double the global average. This growth indicates a very strong future for packaging. Read more…