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 percent 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 percent in the second quarter of 2016. According to the latest GDP data released in India, the manufacturing sector grew 9.1 percent during April-June 2016, a slight decline from the 9.3 percent clocked in January to March. UNIDO also warned that lower industrial growth rates pose a challenge for the implementation of Sustainable Development Goal (SDG) on promoting inclusive and sustainable industrialization and foster innovation, as encapsulated by Goal 9, which also aims to significantly raise the share of manufacturing in the economies of developing countries. It further stated that manufacturing production is likely to rise by only 1.3 percent in industrialized countries and by 4.7 percent in developing ones.
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