RTTNews - The contribution of manufactured goods in India's total exports dropped by 18% during 1999-2000 and 2008-2009, reports PTI quoting a study by industry body Assocham.
The rising competition and demand-saturation in economies of scale led to the adverse effect on exports of manufactured goods. The contribution of the manufacturing sector to GDP was 81% in 1999-2000 while it decline to 63% in 2008-09, it noted.
The manufacturing sector contributes 17% to the GDP of India while in China it contributes 35%, followed by South Korea, Malaysia and Indonesia with 30%, said the Assocham president Sajjan Jindal. He said that the higher contribution by the manufacturing sector in these countries was due to the importance those countries gave for infrastructure investment whereas India on an average invested only 2% of GDP in infrastructure of which half was contributed by the private sector.
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