Experts argue that the growth of manufacturing will be the key for growth in income and employment for multiple reasons. For every job created in the manufacturing sector, three additional jobs are created in related activities. The other is that manufacturing in India is scalable and has higher labour absorption in comparison to services.

In a services-driven economy, which contributed 67.3 per cent  (at constant price) to the GDP but employed only 27 per cent  of total working population in 2013-14, enough jobs will not be created to absorb the burgeoning workforce.

In 2013-14, the manufacturing contributed 15 per cent to the GDP and employed about the same percentage of total workforce, demonstrating that the sector has a better labour absorption means compared to services.
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