Medium-term challenge for Indian mfg is to move from lower to higher-tech sectors
Updated: Jul 09, 2014 04:30:31pm
New Delhi, Jul 9 (KNN) The medium-term challenge for Indian manufacturing is to move from lower to higher-tech sectors, from lower to higher value added sectors, and from lower to higher productivity sectors, according to a government document.
“Indian industry has immense potential for further strengthening the agro-processing, textiles and garments, and leather and footwear sectors with good prospects for sustained employment generation,” according to the Economic Survey presented to Parliament today.
Medium-tech industries are primarily capital intensive and resource processing and high-tech industries are mainly capital and technology intensive, it added.
In order to push the share of manufacturing in overall GDP to the projected 25 per cent, Indian manufacturing needs to capture the global market in sectors showing a rising trend in demand. These sectors are largely high technology and capital intensive, it said.
Such high-tech industries may perform a less important role in sustaining employment but are critical for capital accumulation and skills development and for improving the knowledge base.
To gain a firm footing in these sectors, the policy thrust should be on pushing up the level of public and private expenditure on technology upgradation, research and development, innovation, and skill development, the survey said.
The performance of the manufacturing sector, in terms of its annual growth, has been fluctuating during the last 10 years. After experiencing double digit growth during 2005-06 to 2007-08 and in 2009-10, the growth of the manufacturing sector slowed down considerably during 2012-13 and 2013-14.
“The reasons for the decline in growth of manufacturing sector in recent years inter-alia are moderation in domestic demand, inflationary pressures, increase in input costs and slowdown in economies of other parts of the world etc,” Minister of State of the Ministry of Commerce and Industry Nirmala Sitharaman informed Rajya Sabha.
Employment and unemployment estimates are disseminated in the specific rounds of Survey by the National Sample Survey Office (NSSO). Planning Commission, inter alia using the available NSSO Survey results at that time etc. estimated in the Twelfth Plan document that employment in manufacturing which had increased from 44.05 million in 1999-2000 to 55.77 million in 2004-05, had thereafter declined by 5 million to 50.74 million in 2009-10, she said. (KNN/SD)
“Indian industry has immense potential for further strengthening the agro-processing, textiles and garments, and leather and footwear sectors with good prospects for sustained employment generation,” according to the Economic Survey presented to Parliament today.
Medium-tech industries are primarily capital intensive and resource processing and high-tech industries are mainly capital and technology intensive, it added.
In order to push the share of manufacturing in overall GDP to the projected 25 per cent, Indian manufacturing needs to capture the global market in sectors showing a rising trend in demand. These sectors are largely high technology and capital intensive, it said.
Such high-tech industries may perform a less important role in sustaining employment but are critical for capital accumulation and skills development and for improving the knowledge base.
To gain a firm footing in these sectors, the policy thrust should be on pushing up the level of public and private expenditure on technology upgradation, research and development, innovation, and skill development, the survey said.
The performance of the manufacturing sector, in terms of its annual growth, has been fluctuating during the last 10 years. After experiencing double digit growth during 2005-06 to 2007-08 and in 2009-10, the growth of the manufacturing sector slowed down considerably during 2012-13 and 2013-14.
“The reasons for the decline in growth of manufacturing sector in recent years inter-alia are moderation in domestic demand, inflationary pressures, increase in input costs and slowdown in economies of other parts of the world etc,” Minister of State of the Ministry of Commerce and Industry Nirmala Sitharaman informed Rajya Sabha.
Employment and unemployment estimates are disseminated in the specific rounds of Survey by the National Sample Survey Office (NSSO). Planning Commission, inter alia using the available NSSO Survey results at that time etc. estimated in the Twelfth Plan document that employment in manufacturing which had increased from 44.05 million in 1999-2000 to 55.77 million in 2004-05, had thereafter declined by 5 million to 50.74 million in 2009-10, she said. (KNN/SD)
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