Hi-tech exports will boost manufacturing sector.

PUNE: Hi-tech exports from India have been witnessing CAGR of 26% during the period 2007-2011, with exports having touched US$ 20.9 billion as compared to US$ 8.1 billion in 2007 and pharmaceuticals and electronic goods sectors dominate exports of high-tech products, with the share of electronics in hi-tech exports almost doubling during the 2007-2011 period, a study by Exim Bank has said.

Despite India's early development strategy of creating a well diversified industrial base focused on manufacturing, acceleration of manufacturing growth and the desired dynamism has thus far remained elusive, the study has observed.

The study titled "India's Hi-Tech Exports: Potential Markets & Key Policy Interventions" was recently released by Rajeev Kher, commerce secretary, Ministry of Commerce & Industry.

The study highlights that the share of India's manufacturing sector stands at 13.5 per cent of GDP - a level which has remained stagnant over the past decade. India's share in global manufacturing today is only 1.8 per cent. India ranks 52nd in terms of manufacturing value added as a percentage of GDP, lower than even Bangladesh.

This has had adverse impact on the country's trade deficit with limited ability to export manufactured products, especially the value added high-tech products and excessive reliance on imports for meeting domestic demand.

This is in stark contrast to the experience of other Asian nations, particularly China, where manufacturing constitutes 34% of national GDP and accounts for 13.7% of world manufacturing - up from 2.9% in 1991.

The paradox of heightened demand (both in domestic and export markets) and lagging production, signifies avenues for domestic capacity expansion. This will not only lead to augmenting exports but also reduce the country's dependence on high-tech imports, thereby rendering the country's trade deficit more manageable.

The study has also examined successful development models of Chengdu in China and Colorado in USA, which despite being landlocked (away from ports by about 800 kms) have been able to become successful hi-tech manufacturing hubs. These have, over the years, increased their exports significantly, provided additional employment and generated higher tax revenues than neighboring regions that have not adopted a hi-tech manufacturing strategy. These two examples indicate that hi-tech manufacturing is region-neutral and does not require large land area.

: Hi-tech exports from India have been witnessing CAGR of 26% during the period 2007-2011, with exports having touched US$ 20.9 billion as compared to US$ 8.1 billion in 2007 and pharmaceuticals and electronic goods sectors dominate exports of high-tech products, with the share of electronics in hi-tech exports almost doubling during the 2007-2011 period, a study by Exim Bank has said.

Despite India's early development strategy of creating a well diversified industrial base focused on manufacturing, acceleration of manufacturing growth and the desired dynamism has thus far remained elusive, the study has observed.

The study titled "India's Hi-Tech Exports: Potential Markets & Key Policy Interventions" was recently released by Rajeev Kher, commerce secretary, Ministry of Commerce & Industry.

The study highlights that the share of India's manufacturing sector stands at 13.5 per cent of GDP - a level which has remained stagnant over the past decade. India's share in global manufacturing today is only 1.8 per cent. India ranks 52nd in terms of manufacturing value added as a percentage of GDP, lower than even Bangladesh.

This has had adverse impact on the country's trade deficit with limited ability to export manufactured products, especially the value added high-tech products and excessive reliance on imports for meeting domestic demand.

This is in stark contrast to the experience of other Asian nations, particularly China, where manufacturing constitutes 34% of national GDP and accounts for 13.7% of world manufacturing - up from 2.9% in 1991.

The paradox of heightened demand (both in domestic and export markets) and lagging production, signifies avenues for domestic capacity expansion. This will not only lead to augmenting exports but also reduce the country's dependence on high-tech imports, thereby rendering the country's trade deficit more manageable.

The study has also examined successful development models of Chengdu in China and Colorado in USA, which despite being landlocked (away from ports by about 800 kms) have been able to become successful hi-tech manufacturing hubs. These have, over the years, increased their exports significantly, provided additional employment and generated higher tax revenues than neighboring regions that have not adopted a hi-tech manufacturing strategy. These two examples indicate that hi-tech manufacturing is region-neutral and does not require large land area.

Source : timesofindia.indiatimes.com