Manufacturing industries are important for an economy as they employ a huge share of the labor force and produce

materials required by sectors of strategic importance such as national infrastructure and defense. However, not all manufacturing industries are beneficial to the nation as some of them generate negative externalities with huge social costs. The cost of letting such industries flourish may even exceed the benefits generated by them Owing to the emerging technologies world wide, the world manufacturing industry has geared up and has incorporated several new technologies within it's purview. Economists consider the World manufacturing industry as a sector which generates a lot of wealth. Generating employment, introducing latest techniques, real earnings from shipments etc., have put the world manufacturing industry in a favorable position.
World manufacturing industry With the implementation of the concept of eco friendly environment, world manufacturing industry has taken several measures to ensure that the manufacturing industries worldwide abide by the eco friendly norms. World manufacturing industry also plays an important role in the defense of a country. By manufacturing aircrafts which play a vital role in the country's defense, the aerospace manufacturing industry acts as a shield. Other industries in the manufacturing sector manufactures products which are indispensable in our daily lives. With regard to the GDP or gross domestic product, world manufacturing industry contributes to the global economy as well as the global GDP. World manufacturing industry and type of economy: Capitalist economy: Manufacturing industry in a capitalist economy indulge in mass production and make them available to the customers by earning profits.

Collectivist economy: Manufacturing industry in a collectivist economy is guided by a state run agency for making available the manufactured goods depending on the requirement.

Modern economy: Manufacturing industry in a modern economy operates under regulations framed by the Government.

The manufacturing industry in India, has all the qualities which enhance economic development,increase the productivity of the manufacturing industry and face competition from the global markets. The Manufacturing industry in India is believed to have the potential of improving the economic condition of India. Indian manufacturing industry: Research findings Studies conducted on the manufacturing industry has concluded that India has a working population of 75%. Out of this, only 600 million have acquired education till middle school. Due to this reason, the manufacturing industry in India , which is labor intensive, can provide the requisite number of employment units in the country. Studies have indicated that the productivity of the manufacturing industry in India is approximately 1/5th of the productivity in the manufacturing industry of United States Of America. It is about as compared to the productivity levels in South Korea as well as Taiwan. Labor productivity has escalated only to a small extent in case of India in comparison to United States Of America, on the contrary, labor productivity has increased manifold in countries like Taiwan and Korea Manufacturing industry in India and exports: Exports of manufactured goods in India accounted for 75% in comparison to exports of manufactured goods all over the world. Owing to the performance manifested by the export sector in India, the scenario indicates that there is less competition in the manufacturing segment. Absence of competition is also established by the fact that in spite of reducing the tariff in the early and mid 90s, India continued to be one of the protected economies of the world. Contribution of India's export towards international market grew from 05% to 0.7% during 1990 to 2000. During the same period, Malaysia, China, Thailand and South Korea, registered almost double increase in exports.