Manufacturing Current Affairs

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India ranks 6th in 2015 top-10 manufacturers list: UNIDO report

India has been ranked sixth among the world’s Top-Ten largest manufacturing countries in the United Nations Industrial Development Organization (UNIDO) 2015 Yearbook report.

In this edition of report India has jumped by three positions to sixth position compared to earlier ninth position in the previous report.

Key facts

  • Top 5: China, United States, Japan, Germany and South Korea.
  • Indonesia was placed at the bottom at the tenth position.
  • Indian Scenario: Manufacturing Value Added has grown by 7.6 per cent in 2015 compared to the year 2014.
  • Quarterly index of industrial production (IIP) has shown 1% growth of manufacturing output in the fourth quarter of 2015 compared to the same period of the year 2014.
  • Global Scenario: The global growth rate of manufacturing production has slowed to 2.8 per cent in 2015.
  • This slowdown could be due to reduced manufacturing growth rates recorded by major developing and emerging economies.


  • It is a specialized agency in the United Nations and is member of the United Nations Development Group (UNDG). It is headquartered in Vienna, Austria.
  • Objective: Promotion and acceleration of industrial development in developing countries and countries with economies in transition and the promotion of international industrial cooperation.


Union Government unveils Defence Procurement Procedure 2016

The Union Government has unveiled Defence Procurement Procedure 2016 (DPP 2016).

It was unveiled by Union Defence Minister Manohar Parrikar on the sidelines of the Defexpo-2016 held in Goa.

The DPP 2016 will replace the Defence Procurement Procedure 2013 (DPP 2013) and shall come into force on 1 April 2016.

Highlights of DPP 2016

  • Aim: To ensure timely procurement of defence (military) equipment, systems, and platforms required by the armed forces through optimum utilization of allocated budgetary resources.
  • Scope: It will cover all capital acquisitions undertaken by the Union Ministry of Defence, Defence Services and Indian Coast Guard (ICG) both from indigenous sources and import.
  • Capital Acquisitions Schemes: They are broadly classified into 3 categories viz.
  • Buy scheme: Outright purchase of equipment and procurements under this scheme are further categorized as Buy (Indian- IDDM), Buy (Indian), and Buy (Global).
  • IDDM stands for Indigenously Designed Developed and Manufactured.
  • Buy and Make scheme: The procurements are categorized as Buy and Make and Buy and Make (Indian).
  • Make category Scheme: It seeks developing long-term indigenous defence capabilities and procurements.
  • It empowers Defence Acquisition Council (DAC) to take a fast-track route in order to acquire weapons, which were limited to the armed forces till now.
  • Procurement of defence equipment: Arranged in decreasing order of priority are categorized as (i) Buy (India-IDDM). (ii) Buy (Indian). (iii) Buy and Make (Indian). (iv) Buy and Make. (v) Buy (Global).
  • Buy (India-IDDM) seeks to boost indigenous production and procurements under it should 40% sourced locally in terms of the content.
  • It will promote domestic manufacturing, including government funding R&D and recognition of the Micro, Small and Medium Enterprises (MSMEs) in technology development.


  • The DPP 2016 has been framed based on the recommendations of the Dhirendra Singh Committee that was appointed in May 2015 to review the DPP 2013.
  • The Committee was tasked to evolve a policy framework to facilitate Make in India in defence manufacturing in order align the policy evolved with DPP-2013.
  • It was also tasked to suggest requisite amendments in DPP-2013 in order to remove bottlenecks in the procurement process and also rationalize various aspects of defence procurement.


Union Government approves winding up of National Manufacturing Competitiveness Council

The Union Government has decided to wind up of National Manufacturing Competitiveness Council (NMCC) with immediate effect as it has fulfilled the mandate.

Decision in this regard was taken by the Cabinet Committee on Economic Affairs (CCEA) chaired by the Prime Minister Narendra Modi after it was observed that NMCC has fulfilled the mandate for which it was constituted.

About National Manufacturing Competitiveness Council (NMCC)

  • The erstwhile UPA government had established NMCC in 2004 as a part of its Common Minimum Programme (CMP).
  • Its mandate was to provide a continuing forum for policy dialogue to energize and sustain the growth of manufacturing industry.
  • It was established as an autonomous organization with its Chairman in the rank of a Cabinet Minister and members from Government and Industry.
  • Since its inception, NMCC had conducted various studies independently in consultation with several Government Ministries Departments and also industry association.