India eco to match Chinese might soon
New Delhi--As the indian economy is growing on a faster scale, a day will come when indian economy will surpass the Chinese economy in a big way.
China has always been considered the dominant manufacturing sector and the industrial hub of the world, but the Indian manufacturing GDP sector has recently recorded a 11.4per cent growth. The manufacturing sector has been instrumental in increasing India’s industrial GDP, as well as closing the gap between GDP growth rates of India and China.
Higher global demand for Indian manufacturing goods, higher purchasing power within the country, and increasing internal demand for manufactured goods are some key reasons for the improved performance of the manufacturing sector. Of course, the Chinese manufacturing sector remains much larger in absolute terms.
Good performance by the manufacturing sector in the index of industrial production, is a clear reflection of the increase in production in the manufacturing sector. During April, May and June the Indian index of industrial production has recorded year-on-year double-digit increases. Of which the manufacturing sector has recorded year-on-year increases of 9.8per cent, 11.5per cent, and 12.6per cent respectively.
As a matter of fact the manufacturing sector has been one of the key driving forces of the index of industrial production, and the overall production levels in the country. The index of industrial production is a measure of the overall levels of production taking place in the country, and the sector wise production as well.
The key drivers of the manufacturing sector were the increase in global and internal demand for Indian manufactured goods.
Engineering goods have been the best performing manufactured export item. Engineering goods exports have recorded increases in excess of 30per cent over the last three years. It currently stands at 30per cent for the year so far.
Other manufacturing sector exports that shone during the period are, leather products, chemicals & related products, gems & jewellery, plastic & linoleum products, and computer softwares. The abolition of the WTO quotas for textile products, has also greatly appreciated India’s manufacturing exports bill.
Greater internal demand for manufactured products has also led to the strong performance of the manufacturing sector. Higher purchasing power in both rural and urban India has lead to an increase in demand for household manufactured items. As higher purchasing power shifts individual demand from basic or necessary goods to more expensive manufactured luxury goods. Goods like expensive clothing, cars, jewellery, all of which are manufactured products.