United Nations Industrial Development Organisation (Unido) found that the share of developing countries in the world’s manufacturing value-added output has almost doubled in the last 18 years due to the shift of production units and outsourcing of services from developed nations.
Unido in the International Yearbook of Industrial Statistics 2009 stated that developing countries produced almost 30% of world manufacturing value added (MVA) at the end of 2008 as compared to 16% in 1990. The per capita MVA doubled as early as 2006, while the industrialised world achieved merely 30% increase, it added.
Among developing countries, those in Asia account for nearly ¾ of the total MVA. China alone produces 42% of MVA among all developing countries.
For India, the growth rate of MVA output rose from 6.9% in 2000-2005 to 12.3% in 2005-2007. The MVA per capita grew 10.6 % in 2005-2007 compared to 5.2% in 2000-2005. The share of MVA in India’s gross domestic product (GDP) stood at 14.8% in 2006 compared to 13.8% in 2001, Unido stated in the yearbook. Manufacturing still contributes around 15% of GDP of the country.
According to Unido analysis based on 2007 figures, India ranks among the top 12 producers of MVA. In textiles, the country is ranked fourth, after China, USA and Italy; while in electrical machinery and apparatus it is ranked fifth. It holds sixth position in the basic metals category; seventh in chemicals and chemical products; 10th in leather, leather products, refined petroleum products and nuclear fuel; twelfth in machinery and equipment and motor vehicles.
Among industrialised countries, Japan accounts for most MVA per capita, followed by Switzerland, Singapore, Ireland, Finland, Sweden, USA, Germany and Austria. Luxemburg, Republic of Korea, Denmark, Iceland, Canada, Belgium, United Kingdom, Norway, Netherlands, Italy and France come lower down the list.
“Although in most industrialised countries, the share of manufacturing is decreasing due to the increasing role of service sectors and outsourcing of production activities abroad mainly to developing countries, manufacturing still accounts for more than 20% of the GDP of Japan, compared to the 17 % average for all industrialised countries,” Unido said in the 15th publication of the yearbook.
The organisation said production of information and communication technology products has strengthened the performance of relatively smaller economies like Singapore, Ireland and Finland. “As a result, they have outperformed relatively larger economies such as the USA, Germany, Canada and France,” the yearbook stated.
Source: The Financial Express 08/04/09