Indian industry becoming energy efficient, exports of manufactured goods up, says latest UNIDO statistics yearbook

India has made significant progress in efficient use of energy in its industrial production processes. This is borne out by the fact that in the last 10 years India’s manufacturing output  grew by 7 per cent average per annum while industrial energy consumption grew at a much lower rate of 3.6 per cent, reflecting increasing awareness of the need for energy efficiency and introduction of energy efficient methods in industry.

This was indicated at a presentation by Shyam Upadhyaya, Chief Statistician of the United Nations Industrial Development Organisation (UNIDO), in New Delhi on 29 March. The presentation was jointly organized by the United Nations Information Centre (UNIC) for India and Bhutan, and the UNIDO Regional Office for South Asia, in conjunction with the publication of the UNIDO International Yearbook of Industrial Statistics 2011.

There is a growing trend of productivity in the Indian manufacturing industries, and also, there has been a significant growth in the share of manufactured  goods in India’s exports.

India’s high growth of industrial production has made significant impact on the improvement of various indicators of industrial performance. In other words, higher output growth rates have allowed Indian industry to improve major performance indicators such as labour productivity, structural change (eg, share of medium and high technology industries in the overall output has gone up), and increase in exports.

Energy efficiency in manufacturing industry of India could be further improved, Upadhyaya said, by focusing on better technology for non-metallic mineral products (cement and brick industry); chemical products; basic metals; and textiles as these sectors are highly energy-intensive. Additionally, these sectors still account for a considerable  share of India’s total manufacturing output.

The Joint Secretary, Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce and Industry Chatanya Prasad, noted that the real growth of manufacturing value added (MVA) of India has been around 10 per cent - a significant achievement given that value added indicates the net industrial output of a country. “Based on the positive performance trends in 2010 as brought out in the UNIDO publication, it would be reasonable to assume that India will not only maintain but accelerate the current pace of growth in manufacturing, which is a key source of technological innovation,  wealth creation and employment in the country,” he said.

Stating that UNIDO focuses on three main thematic areas in which it seeks to achieve long-term impact, namely, poverty reduction through productive activities, trade capacity-building and environment and energy, the UNIDO Representative in India and Head of the UNIDO Regional Office for South Asia, Ayumi Fujino, said all these activities were supported by UNIDO’s assistance to monitor, benchmark and analyse the industrial performance and capabilities of countries. “The statistical work done by UNIDO is a strong backbone of such analytical work and hence, lays a solid platform for our interventions with technical assistance in the country,” she added.

India tops developing countries (excluding China) in the production of textiles, chemical products, pharmaceuticals, basic metals, general machinery and equipment, and electrical machinery.

The Yearbook is the annual publication of UNIDO, providing statistics on the performance and  trends in the global manufacturing industry.

The event was also attended by the UNIC Director, and Kiran Mehra–Kerpelman.

Posted April 2011


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