PNB MetLife is known for high investment repute and strong performance, exemplified by the performance of PNB MetLife equity funds which have consistently beaten the benchmark returns in the past. 99% of their equity funds are rated 4 or 5 star by Morning Star, a reputed global rating agency.<\/p>\n

India\u2019s manufacturing sector holds strong potential which can be seen from the impressive growth of the NIFTY India Manufacturing Index, delivering returns of 25.31% compared to the NIFTY 50\u2019s 15.29% over the past five years (as of 30th June). Even the recent budget allocations have further supported growth, with investments in infrastructure, ease of doing business, and policy reforms driving expansion.<\/p>\n

Manufacturing Sector is an enabler for India\u2019s $30 trillion economy<\/strong><\/p>\n

Economic Growth Driver:<\/strong> As per a conservative estimate, the Finance Minister stated that India will be at least a $30 trillion economy by 2047. India\u2019s manufacturing sector holds significant potential for growth, with projections indicating an 18-fold increase over the next 24 years. Despite the sector\u2019s current contribution of approximately 13% to India\u2019s GDP in 2022, it remains underdeveloped compared to other Asian economies. For instance, manufacturing accounts for 18.67% of Indonesia\u2019s GDP and 23.88% of Vietnam\u2019s GDP. This disparity underscores the opportunity for substantial expansion in India\u2019s manufacturing sector, which could significantly enhance its contribution to the country\u2019s GDP and overall economic growth.<\/p>\n

Sector-Specific Growth<\/strong>: McKinsey projects that eleven key sectors could contribute to an incremental ~80% increase in gross value added, including chemicals, basic materials, capital goods, automotive, and pharmaceuticals. These sectors make up about 90% of the Nifty Manufacturing Index, underscoring their importance in driving industrial growth. Additionally, a report from another leading global management consulting firm -Bain estimates that India\u2019s exports could reach a trillion dollars by 2028, reflecting the sector\u2019s high growth potential.<\/p>\n

Economic Stability and Labor Advantage<\/strong>: India\u2019s macroeconomic stability, coupled with a large pool of skilled and semi-skilled labour, positions it uniquely among developing economies. The country\u2019s significant domestic consumption base offers a captive market for producers.<\/p>\n

Infrastructure Development<\/strong>: The government is committed to maintaining strong fiscal support for infrastructure development over the next five years, with an allocation of approximately \u20b911 lakh crore. This investment aims to enhance infrastructure, including roads, railways, and airways, which are crucial for supporting the manufacturing sector. Notable achievements such as the expansion of the National Highway network, extensive electrification of railways, and the increase in operational airports are key drivers of this growth.<\/p>\n

Import Substitution and Global Realignments<\/strong>: Government Initiatives like the Production Linked Incentive (PLI) schemes aim to increase domestic value addition and reduce dependence on imports. The shift in global supply chains, including the notable example of Apple\u2019s increased production in India, highlights India\u2019s growing role in global manufacturing.<\/p>\n

Budget Boost to Manufacturing:<\/strong><\/p>\n

The recent budget has further invigorated the manufacturing sector through initiatives such as the Credit Guarantee Scheme for MSMEs, which improves access to finance, and mandatory onboarding in TReDS. The establishment of twelve new industrial parks, rental housing for industrial workers, and the Critical Minerals Mission will also drive growth. Strengthening tribunals to expedite insolvency resolution will enhance the business environment and competitiveness.<\/p>\n

Investment Opportunity<\/strong><\/p>\n