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In India the share of manufacturing sector in GDP has remained constant since the mid 1960s. It has hovered around 16 to 17 percent and never
crossed 20 percent. As a result, the share of Industry (of which manufacturing constitutes a major part) has been below 30 percent.
Traditionally the manufacturing sector has grown slower than the Electricity sector but this trend has changed since
mid 1990s.
Both mining and electricity sector, which are primarily under the public domain, have faced declining growth rates since the mid
80s.Out of all the components of the Industry sector, in recent years the manufacturing sector has witnessed the highest growth.
It can be clearly seen that the latest upswing in the manufacturing sector growth rates, since the fourth quarter of 2001-02
has been longest one since 1980s. The decadal trendlines show that the trend growth had been highest in the 1980s.
Thereafter there was hardly any trend growth in the decade of the 90s. However, since 2000, Manufacturing sector is again
witnessing strong trend growth.
The Manufacturing sector has grown at a faster rate than primarily publicly owned Coal, Electricity and Crude Petroleum sectors.
However, sectors like Steel and Cement, which are divided between public and private ownership have done better than the
manufacturing sector.
Compared to other major developing countries, India’s share of high technology exports in overall exports has been
abysmally low. It has increased from less than 3 percent in 1992 to less than 5 percent in 2004. In China, high technology
exports account for almost 30 percent of total manufactured exports. In Korea this ratio is 33 percent, whereas in
Malaysia it is 55 percent.
Definition: High-technology exports are products with high R&D intensity, such as in aerospace, computers,
pharmaceuticals, scientific instruments, and electrical machinery.
Source: United Nations, COMTRADE database.
Change in Composition of Indian Manufactured Exports
There has been a significant change in the composition of Indian exports. India has moved away from traditional
exports like Apparel and Textiles to newer products like Chemicals and Engineering Goods