What is the contribution of industry to national economy in India ? Compare it with the East Asian Countries. What is the desired growth and present position of industry in GDP ?
The contribution of industry to national economy has not been satisfactory for the last two decades. It has stagnated at 17 per cent of GDP — out of a total of 27 per cent for the industry which includes 10 per cent for mining, quarrying, electricity and gas. In comparison to India’s 17 per cent share in the GDP, the East Asian Countries have contributed 25 to 35 per cent to their GDP. The trend of growth rate in manufacturing over the last decade has been around 7 per cent per annum. The desired growth over the next decade is 12 percent. At present growth rate is about 9 to 10 per cent and it is expected that we can achieve the growth rate of 12 per cent by some efforts like setting up of the National Manufacturing Competitiveness Council (NMCC).
