The Yearbook, published by the United Nations Industrial Development Organization (UNIDO), finds that in India, the Manufacturing Value Added (MVA) grew by 7.6 per cent in 2015 compared to the previous year. India has now been ranked sixth among the world’s 10 largest manufacturing countries, the UNIDO report has stated. The country previously held the 9th rank.
The Deccan Chronicle states that, the report stated that the quarterly index of industrial production (IIP) shows 1 per cent growth of manufacturing output in the fourth quarter of 2015 compared to the same period of previous year.
In an earlier report on the ‘Make In India’ scheme The Indian Express stated that the vision to increase the share of manufacturing in the country’s gross domestic product (GDP) and creating employment may attract Indian and foreign capital as well as technological investment across an array of 25 sectors. Recognising the natural, cultural as well as economic diversity, including inherent advantages of specific regions, the ‘Make in India’ initiative hopes to harness and develop relevant sectors in each state. In the words of the Prime Minister Narendra Modi , the ‘Make in India’ scheme is aimed at creating a “global manufacturing hub” in India.
In addition to the measures aimed at ease of doing business in India, including relaxations in the foreign direct investment (FDI) norms and banking policy, this programme hopes to see an increased economic activity in high-value industrial sectors through increased foreign collaboration. The aim is to propel India into a global hub of excellence for a wide array of products and services. By way of illustration, as a precursor to this initiative, in mid-2014, India enhanced FDI in the defence sector and allowed FDI in railways infrastructure; as a consequence, defence production, including import substitution for military imports, is finally establishing roots in India.
According to Business Standard, the UNIDO report also said that the global growth rate of manufacturing production has slowed to 2.8% in 2015. “This slowdown could be due to reduced manufacturing growth rates recorded by major developing and emerging economies,” it added. China tops the list of 10-top industrial producers followed by the US, Japan, Germany and Korea. Indonesia was at the bottom of the list.