New Delhi: India has slipped three places—to 54 from 51—on the ladder of competitive industrial performance (CIP), a United Nations agency reported.
Click here to watch video
The report said this was largely because the ranking now covers 122 countries, compared with 87 in the previous ranking in 2005.
“The fall in India’s ranking makes no significant difference. The index is somehow biased towards smaller countries, which are large exporters,” said Philippe R. Scholtes, Unido’s South Asia head.
A leather cluster in Chennai has been ranked among the top 10 dynamic industrial locations across the world, the report said. Chennai also enjoyed the highest elasticity of 1.3%, which means for every 1% increase in exports, employment went up by 1.3%.
Employment and average wages in the surveyed firms in Chennai rose from 4,643 workers and $174 (Rs8,682 today) a month in 2000 to 7,754 workers and $187 in 2006.
Shaky: (from left) N.N. Prasad of department of industrial policy and promotion, ministry of commerce; Shalini Dewan of the United Nations; and Philippe Scholtes of Unido at the release of its Industrial Development Report 2009 in New Delhi on Monday. Shahbaz Khan / PTI
The survey verified whether these locations were also able to provide increased economic and social benefits to the people in terms of jobs, skills, wages and better environmental practices in those locations that registered significant export growth in 2000-2006, during which the survey was carried out. The report advocated development of industrial clusters as a way of industrialization for developing countries as it leads to integrated operations and higher productivity.
Video by Taneesha Kulshrestha