Increased demand of foundation industry products like steel, glass and cement from developing economies like India and China would pave way for higher exports from the annual about 69 billion pound sector in the UK, says a report.
"Growth in demand in emerging economies will create increased export opportunities for UK businesses that can supply goods and services competitively where demand growth is expected, for example in the automative industry and aerospace sector," a PricewaterhouseCoopers (PwC) report commissioned by Tata Steel Europe has said.
Economic power is expected to continue to shift away from the developed economies to the emerging ones as the latter experience the faster economic growth and "this is expected to drive faster growth in demand for products of the foundation industries in these (India, China) economies," it said.
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The report was commissioned by Tata Steel Europe to assess the current and potential economic contribution of the Foundation Industries to the UK economy.
Foundation industries are manufacturers of basic metal, chemicals and chemical products, non metallic mineral products like glass and cement, fabricated metal products and wood and products of wood and cork (except furniture) and accounted for about 69 billion pound turnover in UK in 2012.
Foundation industries accounted for about 30% of UK's exported goods from 31,400 businesses in 2012, employing about half a million people.
The report while stressing on exports to emerging economies also says that at the same time Europe and North America are expected to remain important markets for manufacturing products.
"The challenge for businesses in the Foundation industries will be to maintain and, possibly, enhance their international competitiveness but they will need to balance realising new opportunities in the emerging countries with sustaining their position in European and North American markets," it said.
Last week, Tata Steel Europe, backed by the PwC report had demanded a separate Ministry for foundation industries to provide a fillip to the sector.
"If government is serious about re-balancing the economy and creating sustainable jobs in the region, it must recognise the importance of the UK's foundation industries," Tata Steel Europe's Chief Executive Officer Karl Koehler said.
Foundation Industries turnover in UK is 3% of the British economy.
The PwC report has challenged many perceptions about the foundation industries and emphasised the role they play in driving innovation and skills as well as providing nearly half a million jobs, while supporting millions of others.