Domestic manufacturing set to pick up in India: Capitalmind’s Deepak Shenoy

Buoyed by the Production-Linked Incentive (PLI) schemes offered by the government and increased spending on infrastructure, domestic manufacturing activities are expected to pick up in the country, says Deepak Shenoy, CEO of Capitalmind Financial Services Pvt.

"There will be, I think, a marked increase in activity for domestic manufacturers specifically in the infrastructure sector, the machinery sector, in B2B, commerce and perhaps later down the road, in domestic consumption as well," Shenoy told NDTV Profit.

India's manufacturing sector has emerged as the main growth driver as the country continues to be a bright spot with an over seven per cent GDP growth amid the global slowdown.

India has embarked on the journey to reach $300 billion electronics production, including $100 billion in exports.

Last week, the Union Ministry of Heavy Industries (MHI) set the stage for a second round under the PLI scheme for the manufacturing of Advanced Chemistry Cells (ACC) in the country.

According to Shenoy, there are some domestic companies that are showing considerably more interest and movement in earnings, revenue and even the management commentary.

While there are no major Indian brands in a lot of areas, this will "change over the next few years and the domestic manufacturing is a part of it", Shenoy was quoted as saying in the report.

“When it comes to the Defence sector, India initially bought technology from the other countries and asked them to manufacture here, but the opportunity is being given to Indian companies now,” said the Capitalmind founder.

“Something similar is happening in the railway sector with many of the projects now being allotted to Indian firms,” according to him.