Economy of Leading countries across the globe & contribution of Textile industry therein.
The 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's recent study reveals the size of the economy of leading countries sourcing the S&D from the IMF. It clearly reveals economy of developed countries is quite sound despite the 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 the economy size is smaller than the big economy of a country. Here is the important point that invites a deep introspection and realization, whether Growth indicator or Economy size really indicates the true picture of a country’s economy? Perhaps not, as such an indicator truly has no direct role to play in assessing 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 the latest study undertaken in 2023 but there is a huge disparity in the average per capita GDP of various countries that gives a glimpse of the economy of a country.
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GDP serves as a key metric for assessing the magnitude of a nation’s economy. The conventional approach to 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 the advantage of a huge population and a big value of consumption patterns in diverse ways & an unusual spike in the price of essentials that escalated the size of the economy in
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leaps & bounds in the last decade. Huge consumption of a segment of the population that influences directly or indirectly the consumption pattern of a substantial percentage of the 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 patterns that made a visible contribution to growth. But such an endeavor is not the right proposition to display the economy strong for long, hence; it’s better to emphasize 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 an approach.
Contribution of Textile Industry to GDP.
It depicts in various studies report that industrial activity has a big role in the GDP of any country and the Service sector is the biggest contributor. However, the textile industry has very little or negligible contribution to GDP. The latest study, reveals that the world average contribution of industry to the world's total GDP is around 30% and it varies from 18% to 40% contribution in GDP among industrialized countries including India. It’s reported that there is a small contribution of the Textile industry to Global GDP. It’s hardly 2%, and the 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 the 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 the global market but its contribution to GDP is minimal rather other industries like Steel, Chemicals, and Pharmaceuticals contribute much more than textiles. But the contribution of the textile industry to GDP is quite visible in developing and under-developing countries as the industry’s manufacturing; export and employment play a big role in building the economy.
Conclusion:
GDP is
certainly an indicator of the 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 the economy as individual capacity of purchase and consumption patterns
are more important. The textile industry had an important role in building the economy
of many countries but slowly its importance got erased as the value of the investment,
value addition of products and export, etc. is much lower compared to other
industries. No doubt, it has an important role in creating employment
opportunities. Today it’s mostly confined to developing and under-developing
countries excluding China. India being a growing economy, may be the right
proposition to emphasize on growth of the industry as still there is room to
enhance exports, huge domestic consumption as well and opportunities to create
employment with low or average investment that may contribute to GDP.
The
views are absolutely personal and apolitical, no way contesting anyone.
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