Press Information Bureau

Government of India

Ministry of Commerce & Industry

16-May-2012 15:53 IST

India’s Ranking on UNIDO Competitiveness Industrial Performance Index Improves

The Competitiveness Industrial Performance (CIP) index assesses industrial performance using indicators of an economy’s ability to produce and export manufactured goods competitively. The CIP index comprises eight indicators which include industrial capacity, manufacturing export capacity , economy’s share in world’s manufacturing value added, economy’s share in world’s manufactured exports, industrialization, intensity and export quality. Though India’s ranking remained unchanged at 42nd out of 118 countries, the Competitiveness Industrial Performance index for India has improved from 0.190 in 2005 to 0.206 in 2009 showing an improvement in the performance of manufacturing sector.

The CIP index is based on criteria developed by ‘United Nation’s Industrial Development Organization (UNIDO). As such, there are no specific comments to offer on comparison of India’s performance with countries like Thailand, Mexico and the Philippines.

The Government announced the National Manufacturing Policy in November, 2011 with the objective of enhancing the share of manufacturing in Gross Domestic Product (GDP) within a decade. The Government has also been taking various steps to improve competitiveness of the manufacturing in the country, which, inter-alia, include promotion and facilitation of foreign direct investment by rationalizing and liberalizing Foreign Direct Investment (FDI) Policy, initiatives such as ‘Invest India’ and ‘e-biz’ project under the ‘Scheme for Investment Promotion’; undertaking industrial and other infrastructure development through public private initiatives, and incentivizing research and development and promoting industry related skills.

This information was given by the Minister of State for Commerce and Industry, Shri Jyotiraditya M. Scindia in a written reply in the Rajya Sabha today.

DS/GK

Competitiveness Industrial Performance index shows improved manufacturing performance for India though ranking remained unchanged. The Competitiveness Industrial Performance (CIP) index, based on UNIDO criteria and composed of eight indicators measuring industrial capacity, manufacturing export capacity, shares in world manufacturing value added and manufactured exports, industrialization intensity, and export quality, shows an improvement for India from 2005 to 2009 though India's ordinal ranking among reporting economies remained unchanged. The Government has responded with the National Manufacturing Policy and measures to liberalize FDI, promote investment and e-governance initiatives, develop infrastructure via PPPs, and incentivize R&D and skills to enhance manufacturing competitiveness.