Amid fears of an economic slowdown, a report by the United Nations Industrial Development Organization (Unido) on world manufacturing shows that India’s expansion in this segment in the January-March period (5.1%) is not only below the global average (6.5%), but also slower than that of newly industrialized countries.
China stays at the top of table with its manufacturing output growing at 15% during the period. Though the slowdown is a matter of concern, India’s lower manufacturing growth is mostly due to the high base effect of a year ago, analysts say. They expect manufacturing growth to pick up to an average of 7% during the year. The report comes at a time when the government is contemplating a policy to increase the share of India’s manufacturing from 15% of gross domestic product to 25% by 2025.
Also See | Manufacturing concern (PDF)
A high-level committee on manufacturing, headed by Prime Minister Manmohan Singh, is scheduled to meet on 9 June to finalize a national manufacturing policy.
Graphic by Sandeep Bhatnagar/Mint