India will need to sharply accelerate manufacturing growth to meet its long-standing ambitions for the sector, according to Bank of America economists, who point to several constraints holding the country back from becoming a factory hub for the world.
BofA economists led by Rahul Bajoria estimate that India’s manufacturing sector will need to expand at an annual pace of at least 10% over the next 15 years to lift its share of the economy to 25%. That assumes overall gross domestic product growth of about 7% a year.
