Manufacturing continues to be an engine of growth worldwide in terms of the value it creates and the outsize contributions it makes to innovation, trade, and productivity.

According to a new research by McKinsey Global Institute, the world's manufacturing output (as measured by gross value added) continues to grow - by about 2.7 % annually in advanced economies and 7.4% in large developing economies over the past decade.

Economies such as India, China, and Indonesia have risen into the top ranks of global manufacturing, and in the world's 15 largest manufacturing economies, the sector contributes from 10 % to 33 % of value added.

"Even India, which has leapfrogged into the global services trade with its information technology and business process outsourcing industries, continues to build up its manufacturing sector to raise living standards - aiming to raise the share of manufacturing in its economy from 16 % today to 25 % by 2022," said the latest report.

"As advanced economies recover from the Great Recession, hiring in manufacturing may accelerate. And the most competitive manufacturing nations may even raise their share of net exports," the report said.