New Delhi, July 20 (Inditop.com) The share of manufactured goods in India’s exports declined from 81 percent in 1999-2000 to 63 percent in 2008-09, according to an industry lobby survey released here Monday.
However, India’s project exports – setting up infrastructure projects overseas – increased by over 25 percent during the same period, the report by the Associated Chambers of Commerce and Industry (Assocham) said.
High competition and demand saturation in economies of scale have adversely impacted the manufacturing exports, the study said.
“Contribution to GDP (gross domestic product) by the manufacturing sector in India is just around 17 percent as compared to 35 percent of China,” said Sajjan Jindal, president of Assocham.
He added that the manufacturing sector’s contribution to the GDP is higher in other major economies largely due to their high investments in infrastructure.
India roughly invests 2 percent of its GDP in infrastructure of which 1 percent is contributed by the private sector.
The chamber added that India’s merchandise exports increased from $36.7 billion during 1999-2000 to $159 billion during 2008-09.
