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| India still laggard in per capita manufacturing Sun, 06 Mar 2011 19:54:42 GMT |
| NEW DELHI: India's level of industrialisation is very low despite it emerging as one of the top 10 manufacturers of the world, UN data shows. The country's per capita manufactured value added - a measure of income generated by the manufacturing sector per person - was one-eighth of China's and one-sixth of Brazil's in 2010, the two other developing countries in the group of top 10, according to statistics released by the United Nations Industrial Development Organisation (Unido). Experts say the data reinforces the need to increase the manufacturing sector's contribution to the GDP from 16% to 25% over the next decade, as announced by the finance minister in his budget speech, as "concrete" economic growth will only come from industry and not services. India has shown impressive annual average growth in manufacturing, second only to China, at 7.1% over the last decade and has increased its share in world manufacturing from 1.1% to 1.8% in the period, Unido's statistics show. However, an increase in India's population over the same period has taken away the shine. "The MVA per capita growth in India was lower than that of China and Republic of Korea due to relatively higher population growth in India," said Shyam Upadhyaya, chief statistician, Unido. India's MVA per capita in 2010 was just $ 107, compared to $ 648 in Brazil, $842 in China and $ 4880 in Republic of Korea. According to Crisil's Sunil Sinha, the problem with India is that instead of following the growth path of moving from agriculture to industry to services, the economy has jumped from agriculture straight to services. "While the services sector absorbs skilled population, the unskilled and semi-skilled are absorbed by the industrial sector," Sinha said, adding that it was primarily the reason why a huge population in the country still depends on agriculture. The share of the services sector in the country's GDP has crossed 60%. Though there has |
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