Manufacturing : From laggard to leader

We need policies to promote export-oriented backward integration and linked development of technological capacity

The Indian economy seems to be moving out of the intensive care unit and it will be entering the recovery phase next year, but with some stresses and strains continuing because of the damage done during the crisis. Looking beyond recovery to rejuvenation, the key lies in rebuilding the confidence and dynamism of corporate India and small enterprises. The most crucial sector in this regard is manufacturing for sustaining a high gross domestic product growth rate, say, 8 per cent and over. Hence this column focuses on learning from the record of manufacturing growth in the post-liberalisation era.

The basis for