New Delhi: The contribution of manufactured goods exports in India’s total overseas shipments declined by 18% between 1999-2000 and 2008-09, industry body Assocham said on Monday.
Increasing competition and demand saturation in economies of scale have adversely impacted manufactured goods exports, it said.
“India’s manufacturing sector contribution in the GDP is around 17% as compared to 35% in China. In South Korea, Malaysia and Indonesia the share of the sector in GDP is around 30% in the GDP,” Assocham president Sajjan Jindal said.
The contribution of the manufacturing sector in these countries was higher due to their priority for investing in infrastructure, he said adding that while India roughly invests 2% of its GDP in infrastructure, 1% of this is contributed by private sector.
“Manufacturing exports as a percentage of India’s total exports have seen deceleration between fiscal 1999-2000 to 2008-09 from 81% to 63%,” it said.
The contribution of manufacturing exports in the country’s total overseas shipments is over 75%.
The study also said the projects exports during the same period grew by 25%.