Executive Summary
In 1990, India and China had almos t the same GDP per capita. Since then, driven by its manufacturing sector, China’s economy has grown much faster than has India’s and its GDP per capita on a PPP basis is 90% higher than India’s GDP per capita. To achieve faster rates of economic growth India urgently needs to strengthen its own manufacturing sector.
In 1990, India and China had almos t the same GDP per capita. Since then, driven by its manufacturing sector, China’s economy has grown much faster than has India’s and its GDP per capita on a PPP basis is 90% higher than India’s GDP per capita. To achieve faster rates of economic growth India urgently needs to strengthen its own manufacturing sector.
The growth in manufacturing sector is dependent on the investment climate. The structural reforms since 1990s have made some progress. Despite recent setbacks, it is universally acknowledged that the reforms process in India cannot be reversed and sooner or later these reforms will be implemented. However, the long term competitive ability of Indian firms would depend on production efficiency. Production efficiency, in turn, is dependent on ability to develop, import and adapt new technologies among other factors.
India has made significant progress in various spheres of science and technology over the years and can now take pride in having a strong network of S&T institutions, trained manpower and an innovative knowledge base. Given the rapid pace of globalisation, fast-depleting material resources, increasing competition among nations and the growing need to protect intellectual property, strengthening the knowledge base is an important issue. While India’s technical talent is recognized world over, there have been serious institutional gaps in promoting industry-research institutions interaction.
This report takes a critical look at the Indian manufacturing sector with respect to the technology and scientific resource availability. Critical high growth manufacturing sectors like food processing, auto components, pharmaceuticals, light engineering etc have been profiled. The current technology status, technology development initiatives and future imperatives have been identified to propel Indian manufacturing industry achieve high growth rates.
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