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Manufacturing Grows with Globalization
 

Globalization over the last 14 years has tripled manufacturing production with more than 1/2 of produced goods being exported to mainly other Asian and African nations. While the manufacturing gross domestic product has grown by 6.4%, exports have grown by 16.1% in the last 14 years. Surprisingly, imports have grown only by 16.2% during the same period.

Growth in manufactured goods exports have been championed by engineering goods, gems, and jewelry and other items include leather and leather-based products, textiles, and chemical products. Making up 65% of India's export revenues, these goods beat the more well-known services sector and much-pampered but poorly supported agriculture sector. Those two areas get most of the attention but their exports to GDP ration is at .12 compared to .60 for manufactured goods.

Last year, India exported largest quantities of raw material mainly to China. This is a trend that needs to be arrested and the Government is planning to ban export of iron ore.
 

Thankfully, the production of goods and adding value to raw materials is gaining more attention. In one such healthy trend, the National Center for Design and Product Development (NCDPD) and the Export Promotion Council for Handicrafts (NEPCH) have launched an ambitious plan to export handicrafts worth USD 7.5 billion by 2009-10. Last year, the handicraft export was valued at USD 3.146 billion and is expected to grow at 20-30% annually. The plan is to include reputed designers to design products for the North American and European markets like fashion accessories, bags, gift items, home accessories, furniture, dry flowers, wooden crafts, horn and bone products, paper products, cane and bamboo products, and Christmas ornaments. They also plan to organize product specific exhibitions such as for textiles, flooring, and fashion jewelry. Demand for Indian handicrafts has grown with the focus on India and the Indian economy with permanent exhibits doubling to 700 at the Greater Noida center alone.

Handicrafts industry is the second largest employer after agriculture in India.