GS Paper 3
Syllabus: Manufacturing sector
Context: The Department of Science and Technology in India has released the “National Manufacturing Innovation Survey (NMIS) 2021-22: Summary for Policymakers” to enhance the competitiveness of Indian manufacturing and increase its share in the GDP.
About NMIS:
| Information | |
| National Manufacturing Innovation Survey (NMIS) 2021-22 | |
| Conducted By | Department of Science and Technology (DST) in collaboration with the United Nations Industrial Development Organization (UNIDO) |
| Objective | To evaluate the innovation performance of manufacturing firms in India |
| Components | Firm-level survey and sectoral systems of innovation (SSI) survey (in 5 selected sectors i.e., food & beverage, textiles, automotive, pharmaceutical, and Information and Communication Technology (ICT)) |
| India Manufacturing Innovation Index (IMII) | The firm-level survey captured data related to the process of innovation, access to finance, resources, and information for innovation etc. for firms. These data were then used to compile India Manufacturing Innovation Index (IMII), covering 28 states and 6 UTs |
| Follow-up | DST’s first National Innovation Survey held in 2011 |
| About UNIDO | UNIDO (est: 1966; HQ: Vienna, Austria) is a specialized agency of the UN to promote and accelerate industrial development. India is one of UNIDO’s Founding Members. |
| Status of India’s Manufacturing Sector | The Indian manufacturing industry generated 16-17% of India’s GDP (the target is 25%) and is projected to be one of the fastest-growing sectors. |
Major Findings of the NMIS Survey 2021-22:
| Findings | Description: |
| Innovative firms | Nearly 25% of India is innovative |
| Top-ranked state in innovation (in IMII) | Karnataka> Dadra & Nagar Haveli and Daman & Diu> Telangana> Tamil Nadu |
| Lowest ranked state | North-eastern states> Bihar> Assam> Jharkhand |
| Lack of finance from external sources as a barrier | Nearly 40% of the firms faced this issue |
| Triple-Helix model focus | The survey focuses on this model. It refers to the relationships between universities, knowledge-based institutions (KBIs), firms, governments, and hybrid organizations
|
Recommendations of the Survey:
| Recommendation | Example |
| Awareness campaign for innovation | E.g., Through events, webinars, and media campaigns. |
| Collaboration (Triple-Helix model focus) | Create a joint R&D program between universities, research institutes, and industries to foster collaboration and sharing of best practices. |
| Innovation centres | Establish innovation centres in every state that offer training and funding to MSMEs. |
| Investment | Encourage venture capitalists and angel investors to invest in innovative startups by providing tax incentives and reducing regulatory barriers. |
| Financing | Establish a government-backed loan program that offers low-interest loans to firms for innovation projects. |
| Workforce | Promote STEM education and provide training programs for workers to learn new skills in emerging technologies. |
| Industry 4.0 technologies | Provide financial assistance to firms to upgrade their manufacturing facilities with digital technologies such as IoT, AI, and big data analytics. |
| Intellectual property rights protection | Establish a strong legal framework that protects patents, trademarks, and copyrights, and provides swift enforcement against infringement. |
Mains Links
Q.1 “Industrial growth rate has lagged behind in the overall growth of Gross-Domestic-Product(GDP) in the post-reform period” Give reasons. How far are the recent changes in Industrial Policy capable of increasing the industrial growth rate? ( UPSC 2017)
Q.2 Normally countries shift from agriculture to industry and then later to services, but India shifted directly from agriculture to services. What are the reasons for the huge growth of services vis-a-vis the industry in the country? Can India become a developed country without a strong industrial base? (UPSC 2014)
Prelims Links:
- In the ‘Index of Eight Core Industries’, which one of the following is given the highest weight? ( UPSC 2015)
(a) Coal production
(b) Electricity generation
(c) Fertilizer production
(d) Steel production
Ans: B
