Manufacturing GDP down in Jan, textile sector needs Govt support
07 Mar '06
4 min read
Despite talks of preferential focus on to accelerate manufacturing of Indian industry, the sector has remained a subdued one as its share in GDP has stagnated at 16 percent by January 2006 against the manufacturing contribution to their GDP in countries like China, Korea, Malaysia and Thailand which has respectively been estimated at 35 percent, 29 percent, 31 percent and 34 percent.
These findings have been compressed in a Paper brought out by The Associated Chambers of Commerce and Industry of India (ASSOCHAM) on Can India Become A Global Sourcing Centre In Manufactured Exports? What The Government Needs To Do?, highlighting that the focus of Indian government in the past has not been adequate either on agriculture or manufacturing, as a result, India continues to lag much behind the countries in our neighbouring region.
The Paper which will be submitted to the Finance Ministry shortly, calls for laying top priority of policy makers in agriculture and manufacturing to enable these two sectors to grow at double digit level in sustained manner to help India compete with economies of scale not only in the ASEAN but elsewhere also.
It reveals that while India's manufacturing contribution to GDP has come down to 16.1 percent by January 2006 from its earlier level of 17.1 percent. On an average manufacturing contribution to Indian GDP stagnated at a level of 14 percent from 1965 onwards until about 2004. In 1965, the share of manufacturing in overall GDP of Korea, Malaysia and Thailand was 18 percent, 9 percent and 14 percent which by January 2006 went up and increased to the level of 29 percent, 31 percent and 34 percent respectively.
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