'Share of manufactured goods in exports dip 18% in 9 yrs'
Press Trust of India / New Delhi Jul 20, 2009, 15:45 IST
The contribution of manufactured goods exports in India's total overseas shipments has declined by 18 per cent during 1999-2000 and 2008-09, a study by industry body Assocham said today.
Increasing competition and demand saturation in economies of scale have adversely impacted manufactured goods exports, it added.
"India's manufacturing sector contribution in the GDP is around 17 per cent as compared to 35 per cent in China. In South Korea, Malaysia and Indonesia the share of the sector in GDP is around 30 per cent," 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 per cent of its GDP in infrastructure of which one per cent 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 per cent to 63 per cent," it said.
The contribution of manufacturing exports in the country's total overseas shipments is over 75 per cent.
The study also added the projects exports during the same period grew by 25 per cent.
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