India must integrate into the global value chain ecosystem and tap into service sector’s growth to advance its manufacturing.
Authors
Chavi Asrani, Associate Professor, O.P. Jindal Global University, Sonipat, Haryana, India.
Charu Grover Sharma, Assistant Professor, Indian Institute of Foreign Trade, Delhi.
Summary
Since the start of the 21st century, two of the most populous Asian countries, India and China, have challenged the dominance of Western economies, witnessing the fastest growth that is likely to continue in the next five decades. During the 1990s, China and India were the 11th and 12th largest world economies, respectively, with similar GDPs. Today, China is an upper-middle-income country, while India is a lower-middle-income group economy. India’s manufacturing sector can advance with coordinated government and private action and by integrating into global value chains.
Instead of cutting costs, India must focus on skilling its workforce, developing quality infrastructure, and reducing trade barriers. It is critical that India expedites infrastructure development and adopts innovative technologies to enable flexibility for the manufacturing sector growth. India must utilise its strength in a timebound manner with apt policy initiatives to support its manufacturing sector to propel the Indian century.
Published in: Telangana Today
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