However, India’’s project exports grew more than 25 percent during the same period, the report said. The manufacturing exports have been adversely impacted by the high competition as well as demand saturation in economies of scale, the study said. “Contribution to GDP (gross domestic product) by the manufacturing sector in India is just around 17 percent as compared to 35 percent of China,” said Assocham president, Sajjan Jindal.

He added that the contribution of manufacturing sector to the GDP is more in other major economies largely on account of their high investments in infrastructure. The chamber also added that India’’s merchandise exports grew from $36.7 billion during 1999-2000 to $159 billion during 2008-09.