In the coming years, India is expected to witness significant demographic growth and a disproportionate expansion in the working age population. To absorb much of this labour force, the manufacturing sector would need to play an important role. Currently, the sector accounts for 12% of the total employment in the country and also provides a transitional opportunity to the labour force in agriculture.
In addition, the sector has a multiplier effect for job creation in the services sector. According to the National Manufacturing Policy, every job created in the manufacturing sector creates two-three additional jobs in related activities. 5.