Performance of Indian Manufacturing in International Economy

Abstract

This article maintains that the need to increase the share of manufacturing (in real terms) in gross domestic product (GDP) from the present around 15 per cent to around 25 per cent is an important policy focus but signifies an arduous task in the context of intense global competitiveness. It should allow for providing encouragement to firms to search for greater markets backed by a concentrated effort to carry out narrow specialisations in a few manufacturing related tasks/products. It can only contribute immeasurably towards encouraging ‘inquiring minds’ that in turn supports a tendency towards knowledge-based economy for the purpose of the long-term meaningful participation in international trade (and finance). JEL Classification: F31, J60, O14