United Nations: India is on the path of becoming a "pivot" for high-tech world manufacturing even as global manufacturing growth is expected to remain low in 2016 due to weakened financial support for productive activities, a new UN report said.
The quarterly 'World Manufacturing Production report', published by the UN Industrial Development Organisation (UNIDO) said world manufacturing output is expected to increase by only 2.8 per cent in 2016.
However, in contrast to recent years, there will be no breakout from the low-growth trap in 2016.
Growth performance was much higher in Asian economies, where manufacturing output rose by 6.5 per cent in the second quarter of 2016.
"India's manufacturing output, which achieved impressive growth rates in the last quarters, experienced a second slight decline in a row but the prospects for India's manufacturing are conclusive, since India is on the path to becoming a pivot for high-tech world manufacturing," the report said.
According to the latest GDP data released in India, the manufacturing sector grew 9.1 per cent during April-June 2016, a slight decline from the 9.3 per cent clocked in January to March.
By Yoshita Singh