uploads/2015/01/india-manufacturing-production1.jpg

Modi set to send the manufacturing sector in India into orbit

By

Updated

Mangalyaan should inspire manufacturing sector, says Modi

Indian Prime Minister Narendra Modi believes that human resource development, innovation, and research should become part of the government’s DNA. What he’s implying is that these three undertakings should drive economic growth in India going forward.

At a national workshop held on December 29, Modi said the manufacturing sector as a whole should take inspiration from the achievements of India’s space scientists. He described the Mars orbiter mission, also called Mangalyaan, as a national victory to be emulated.

Article continues below advertisement

The Mangalyaan victory

On September 24, India’s $74 million Mangalyaan spacecraft entered the orbit around Mars. It marked the first time such a mission was accomplished on the initial attempt. It also made India the first Asian country to reach the red planet.

Manufacturing remains a major challenge for India

In India, the manufacturing sector has been slow, and this has taken a heavy toll on overall economic growth. The WisdomTree India Earnings Fund (EPI), the PowerShares India Portfolio (PIN), and the iShares MSCI India ETF (INDA) invest in a representative basket of equities traded on the Indian stock market. The performance of these funds serves as a good reflection of the overall economic health of the country.

Indian Finance Minister Arun Jaitley points to the high interest rates prevailing in the economy as the reason for the slowdown in the manufacturing sector. Interest rates in India are higher than other emerging market economies including China (FXI), Indonesia (EIDO), the Philippines (EPHE), Malaysia (EWM), Mexico (EWW), and South Africa (EZA).

Advertisement

More From Market Realist