Which India is a Global Industrial Power?
Posted On May 27, 2021
In the words of the World Bank’s World Development Indicators, India has emerged as a global industrial power in the last few decades.
This is because the country has had a lot of growth in its manufacturing sector, and the number of manufacturing jobs grew by more than 50 per cent between 2000 and 2015.
The country is also the world’s largest exporter of steel, cement, cement products and other products, and in 2017, it was also the largest importer of iron ore.
In a new report, The Times Of India and the Economic and Political Weekly of India (EPW), a trade publication of the Economic Survey of India, are comparing India’s industrialisation to that of other emerging economies.
India’s Industrial Development Score is a measure of the economic impact of the country’s industrial development on the global economy.
The report looks at several factors, including manufacturing employment, export value and manufacturing output, and also industrial output per head of population.
It is important to note that the World Development Index is an aggregate measure, and is not a measure for individual countries.
EPW has compiled the index to gauge India’s development since its independence from British rule in 1947.
The index is based on the output of more than 60 countries.
In the report, EPW and The Times also analyse the impact of various sectors, including defence, IT, finance, and energy.
They point out that in the period covered by this report, India’s manufacturing output has grown by over 10 per cent annually, but the industrial sector has not grown in any meaningful way.
“While India’s GDP has grown rapidly in recent decades, the country as a whole has not seen a real industrialisation of any kind,” the authors wrote.
The growth in manufacturing output and employment has also slowed down significantly, indicating that the country is in a downward trend.
“The economic growth rate of India in the past few decades has been less than 10 per of the global rate, and it has fallen below the international average in most measures of economic growth,” they added.
The EPW authors also pointed out that the industrial growth rate in India is only a fraction of that of the world.
The EPW study points out that “over the past decade, India achieved a remarkable rate of industrial growth.
Its growth rate is currently at the low end of the growth range for industrial growth.”
India’s industrial growth has also declined since 1999.
The survey notes that over the past five years, the industrial output in India has declined by about a third.
The government has responded to the slowdown by raising tariffs on foreign imports and lowering the rate of tax on imported goods.
India is also seen as the only major economy in Asia where the share of manufacturing employment has declined since 2000.
The World Development indicator defines industrial production as the output produced by a single factory in the year of its establishment.
The country’s share of the total manufacturing employment in 2016 was 19.5 per cent.
India’s share has been decreasing steadily since 2000, according to the report.
The decline in manufacturing employment is attributed to many factors, mainly the country becoming an energy-intensive economy and an increasingly dependent on imports of raw materials.
India has also become a global centre for the manufacturing sector in terms of its export value.
It has become the largest exporters of steel and cement in the world since 2000 and has a large share of that sector in the Indian economy.
It is also a major importer.EPW notes that the share in manufacturing exports in 2016 of India’s total export value was about 7 per cent, compared to the global average of about 10 per per cent in 2016.
The Indian economy is also likely to see some growth in the manufacturing industry.
The study points to the Indian government’s efforts to make manufacturing more competitive, and states that “the manufacturing sector is expected to grow at a faster pace than the service sector.”