Profitability of medium-low tech industries into a tailspin.

Even after three decades of liberalisation, India’s manufacturing hasn’t really taken off; captive manufacturing has implications for capital, labour and technology. Technology consideration has amplified lately in view of emerging challenges from advanced technologies that impact manufacturing. But, in a race to catch-up with high-tech manufacturing, lower-tech segments should not be ignored. In India, much of the invested fixed capital belongs to medium-low tech (MLT) manufacturing, with 42% share in total fixed capital under private ownership. This is against a much lower contribution of low-tech manufacturing with only 26% share, while medium-high and high-tech manufacturing jointly account for 32% in total private fixed capital. It can be costly to overlook the interests of MLT manufacturing.