Economy of Leading countries across the globe & contribution of Textile industry therein.
Economy of a country (in terms of GDP in value) is usually defined as that indicates the pattern of consumption and utilization of resources. The idea is well relevant to a country where economic disparity is minimal & vice versa.
Forbes recent study reveals the size of the economy of leading countries sourcing the S&D from IMF. It clearly reveals, economy of developed countries is quite sound despite growth rate is lower than many countries including India. The latest inputs also depict that per capita GDP in most of the developed countries is much higher than other countries including India though economy size is smaller than big economy of a country. Here is the important point that invite a deep introspection and realization, whether Growth indicator or Economy size really indicate the true picture of a country’s economy? Perhaps no, as such indicator truly has no direct role to play to assess the strength of an economy. It lies in the per capita income and Power of Purchase Priority (PPP) of an individual. USA, China, Germany, Japan and India are the largest economies in the world as per latest study undertaken in 2023 but there is a huge disparity in average per capita GDP of various countries that gives a glimpse of an economy of a country.
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GDP serves as a key metrics assessing the magnitude of a nation’s economy. The conventional approach of measuring a country’s GDP involves the expenditure method wherein the total is designed by aggregating expenditure on fresh consumer goods, new investment, Govt. outlays and the net value of exports. India has an advantage of huge population and a big value of consumption pattern in diverse ways & unusual spike in price of essentials that escalated the size of the economy in
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leaps & bounds in last one decade. Huge consumption of a segment of population that influences directly or indirectly consumption pattern of a substantial percentage of population, imposition of tax on expenditure & scaling up of revenue generation thus Govt. enhanced outlays etc. made a direct impact. Govt. freebies bridge the gap in consumption pattern that made a visible contribution to grow. But such endeavor is not the right proposition to display the economy strong for long, hence; it’s better to emphasis on enhanced average per capita of GDP and bridge the economic disparity in the society as well as improve the Power of Purchase Priority of an individual. Perhaps India may be in need of such approach.
Contribution of Textile industry in GDP.
It depicts in various study reports that industrial activity has a big role in GDP of any country and Service sector is the biggest contributor. But textile industry has a very little or negligible contribution in GDP. As per the latest study, it reveals that world average contribution of industry in world total GDP is around 30% and it varies 18% to 40% contribution in GDP among industrialized countries including India. It’s reported that there is a small contribution of Textile industry in Global GDP. It’s hardly 2%, and Textile industry has only a meager contribution in global industrial activities. It’s only 7%, however; India has a better contribution in GDP, i.e. 4% (approximately) though it was much higher two decades ago. Developed countries have hardly any contribution as textile industry is more or less nonexistent. Surprisingly China has a huge size of establishments of textile that have a sizeable share in manufacturing & export of global market but it’s contribution to GDP is minimal rather other industries like Steel, Chemicals and Pharmaceuticals contribute much bigger than textile. But contribution of textile industry in GDP is quite visible in developing and under developing countries as the industry’s manufacturing; export and employments make a big role to build economy.
Conclusion:
GDP is
certainly an indicator of size of the economy of a country as it’s computed
considering various parameters. No doubt, it does not clearly indicate the full
strength of economy as individual capacity of purchase and consumption pattern
are more important. Textile industry had an important role in building economy
of many countries but slowly it’s importance got erased as value of investment,
value addition of product and export etc. is much lower compare to other
industries. No doubt, it has an important role to create employment
opportunities. Today it’s mostly confined in developing and under developing
countries excluding China. India being a growing economy, it may be a right
proposition to emphasis on growth of the industry as still there is a room to
enhance export, huge domestic consumption as well as opportunity to create
employment with low or average investment that may contribute to GDP well.
The
views are absolutely personal and apolitical, no way contesting anyone.
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