India poised to become “Pivot” for High-Tech Manufacturing: UN Report
UNITED NATIONS: Latest UN report published by UN Industrial Development Organisation (UNIDO) has said that India is on path to become “Pivot” for World high-tech manufacturing, even though manufacturing growth globally remains low in 2016.
As per report, world manufacturing output is expected to increase by only 2.8 per cent in 2016 due to weakened financial support for productive activities.
Recently released GDP figures indicate, India’s manufacturing sector grew 9.1 per cent during April-June 2016, a slight decline from the 9.3 per cent clocked in January to March.
“India’s manufacturing output, which achieved impressive growth rates in the last quarters, experienced a second slight decline in a row but the prospects for India’s manufacturing are conclusive, since India is on the path to becoming a pivot for high-tech world manufacturing,” the report said.
Growth performance was much higher in Asian economies, where manufacturing output rose by 6.5 percent in the second quarter of 2016.
UNIDO also warned that lower industrial growth rates pose a challenge for the implementation of Sustainable Development Goal (SDG) on promoting inclusive and sustainable industrialisation and foster innovation.
It further stated that manufacturing production is likely to rise by only 1.3 percent in industrialised countries and by 4.7 percent in developing ones.
The growth rate performance of China, the world’s largest manufacturer, is likely to further decline from last year’s 7.1 percent to 6.5 percent this year.
Developing economies maintained higher growth in the production of textiles, chemical products and fabricated metal products, while the growth performance of industrialised economies was higher in the pharmaceutical industry and in production of motor vehicles.