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LATEST NEWS UPDATES | The rise of rural manufacturing -M Suresh Babu

The rise of rural manufacturing -M Suresh Babu

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published Published on Dec 14, 2022   modified Modified on Dec 14, 2022

-The Hindu 

A steady stream of investments in rural locations over the last two decades has ensured that 42% of factories and 62% of fixed capital is in the rural side

There is growing evidence to suggest that the most conspicuous trend in the manufacturing sector in India has been a shift of manufacturing activity and employment from bigger cities to smaller towns and rural areas. This ‘urban-rural manufacturing shift’ has often been interpreted as a mixed bag, as it has its share of advantages that could transform the rural economy, as well as a set of constraints, which could hamper higher growth.

Given the size of the Indian economy and the need for balanced regional development, the dispersal of manufacturing activities is a welcome sign. However, the compulsions of global competition often extend beyond the considerations of low-wage production and depend on the virtues of ‘conducive ecosystems’ for firms to grow.

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The Hindu, 14 December, 2022, https://www.thehindu.com/opinion/op-ed/the-rise-of-rural-manufacturing/article66260124.ece


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