Share of manufacturing in India's gross domestic product (GDP) has declined to 15.1 per cent this year, the lowest level in the past 10 years, a research report showed on Friday.
According to a survey conducted jointly by the Confederation of Indian Industry (CII) and the Boston Consulting Group, 83 per cent executive directors of companies that participated in the survey feel that slowdown in domestic demand had the biggest impact on the manufacturing sector in the past 12 months.
More than 75 executive directors of manufacturing companies in India participated in the survey. The report was released on the eve of the 12th Manufacturing Summit organised in Mumbai by the CII.
"It is necessary for manufacturing companies to step back and filter out the structural trends effecting manufacturing from the noise of day-to-day fire-fighting," said Jamshyd N. Godrej, chairman and managing director, Godrej and Boyce Manufacturing in the report.
"We believe that the context of manufacturing has changed. The new environment is characterised by shocks, swings and shortages," said Godrej, who is also the chairman of CII 12th Manufacturing Summit.
Despite the recent slowdown, long-term prospects of the Indian manufacturing sector remain robust, the report said.