<p>Punching a hole in the Centre's claim to turn India into a $1-trillion manufacturing economy in the next four years, a report by its own think-tank Niti Aayog on Wednesday showed that the share of manufacturing sector in India's gross domestic product (GDP) has risen by barely half a percentage point in the over four years of Prime Minister Narendra Modi-led government.</p>.<p class="bodytext">The share of manufacturing in India's GDP was 16% in 2014-15, the year the NDA government came to power. It increased to 16.6% in 2017-18, according to Aayog's data tabulated in its 'Strategy for New India @75', unveiled by Finance Minister Arun Jaitley here.</p>.<p class="bodytext">In percentage terms, the Centre aimed at increasing the share of manufacturing to 25% of GDP by 2022, creating 100 million new jobs.</p>.<p class="bodytext">“The share of manufacturing in India’s GDP is low relative to the average in low- and middle-income countries. It has not increased in any significant measure in the quarter century after economic liberalisation began in 1991.</p>.<p class="bodytext">“Within manufacturing, growth has often been highest in sectors that are relatively capital-intensive, such as automobiles and pharmaceuticals. This stems from India’s inability to capitalise fully on its inherent labour and skill cost advantages to develop large-scale labour intensive,” it said.</p>.<p class="bodytext">The Aayog also said that only “suitably structured” mega public projects such as Sagarmala, Bharatmala, industrial corridors, and the Pradhan Mantri Awas Yojana (PMAY) can stimulate domestic manufacturing activities.</p>.<p class="bodytext">Separate data points have suggested that growth in India's labour-intensive sectors like gems and jewellery, engineering goods, leather and textiles has been stuttering. These sectors are the ones which employ an estimated 85% of the country's workers, paying them 20 times less than their counterparts in the formal sector.</p>.<p class="bodytext">The report suggested that India needed to generate 80-90 lakh new jobs annually to absorb the net addition to the workforce in the economy.</p>.<p class="bodytext">“To capitalise on its demographic dividend, India must create well-paying, high-productivity jobs,” it said..</p>.<p class="bodytext">Of India’s total workforce of about 52 crore, agriculture employed nearly 49% while it contributes only 15% to the economy. In contrast, only about 29% of China’s workforce are employed in agriculture.</p>
<p>Punching a hole in the Centre's claim to turn India into a $1-trillion manufacturing economy in the next four years, a report by its own think-tank Niti Aayog on Wednesday showed that the share of manufacturing sector in India's gross domestic product (GDP) has risen by barely half a percentage point in the over four years of Prime Minister Narendra Modi-led government.</p>.<p class="bodytext">The share of manufacturing in India's GDP was 16% in 2014-15, the year the NDA government came to power. It increased to 16.6% in 2017-18, according to Aayog's data tabulated in its 'Strategy for New India @75', unveiled by Finance Minister Arun Jaitley here.</p>.<p class="bodytext">In percentage terms, the Centre aimed at increasing the share of manufacturing to 25% of GDP by 2022, creating 100 million new jobs.</p>.<p class="bodytext">“The share of manufacturing in India’s GDP is low relative to the average in low- and middle-income countries. It has not increased in any significant measure in the quarter century after economic liberalisation began in 1991.</p>.<p class="bodytext">“Within manufacturing, growth has often been highest in sectors that are relatively capital-intensive, such as automobiles and pharmaceuticals. This stems from India’s inability to capitalise fully on its inherent labour and skill cost advantages to develop large-scale labour intensive,” it said.</p>.<p class="bodytext">The Aayog also said that only “suitably structured” mega public projects such as Sagarmala, Bharatmala, industrial corridors, and the Pradhan Mantri Awas Yojana (PMAY) can stimulate domestic manufacturing activities.</p>.<p class="bodytext">Separate data points have suggested that growth in India's labour-intensive sectors like gems and jewellery, engineering goods, leather and textiles has been stuttering. These sectors are the ones which employ an estimated 85% of the country's workers, paying them 20 times less than their counterparts in the formal sector.</p>.<p class="bodytext">The report suggested that India needed to generate 80-90 lakh new jobs annually to absorb the net addition to the workforce in the economy.</p>.<p class="bodytext">“To capitalise on its demographic dividend, India must create well-paying, high-productivity jobs,” it said..</p>.<p class="bodytext">Of India’s total workforce of about 52 crore, agriculture employed nearly 49% while it contributes only 15% to the economy. In contrast, only about 29% of China’s workforce are employed in agriculture.</p>
