India on path to become pivot for hi-tech mfg: UNIDO

The Dollar Business Bureau 

India is on the track to become a ‘pivot’ for high-technology world manufacturing even the growth in global manufacturing is likely to stay low in 2016 due to a decline in financial support for production activities, said a latest UN report. 

“World manufacturing production is likely to surge by just 2.8 percent this year, said the quarterly report World Manufacturing Production, published by the United Nation Industrial Development Organisation (UNIDO). 

However, compared to last few years, there will be no getaway from the trap of low-growth in 2016. 

Asian economies witnessed much higher growth performance, where manufacturing output increased by 6.5 percent in the Q2 of the current year. 

“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. 

As per the recent data on GDP published in India, the manufacturing sector recorded a 9.1 percent growth during the period of April-June 2016, a little drop from the 9.3 percent recorded during January-March period. 

UNIDO also notified that the lower rates of industrial growth pose a challenge for implementing Sustainable Development Goals (SDGs) on promoting sustainable and inclusive industrialisation and nurturing innovation, as summarised by Goal 9, which also focused on significantly increasing the manufacturing share in the economies of developing nations. 

The report further stated that manufacturing output is expected to rise by just 1.3 percent in industrialised nations and by 4.7 percent in developing economies.