India: Industrial Growth to Pick Up With Inflation Easing

 

NEW DELHI (NNN-IANS) -- India's industrial growth during the current financial year is pegged at 4-5 percent, less than the annual growth rates achieved in the recent past, but is expected to pick up with inflation easing, the Economic Survey 2011-12 said Thursday.

"With the easing of headline inflation, moderation in commodities prices in the international market, and revival of manufacturing performance in recent months in the major economies, India's industrial sector is expected to rebound during the next financial year," said the survey tabled in parliament by Finance Minister Pranab Mukherjee Thursday.

According to the survey, the sector will also have to meet challenges in the short term such as shoring up of business sentiments, spurring investment in productive activities and identifying bottlenecks that can be removed in a reasonably short period of time.

The long term average annual growth of industries comprising mining, manufacturing and electricity has remained aligned with the overall GDP (gross domestic product) growth rate during the post reform period between 1991-92 and 2011-12, averaging 6.7 percent as against GDP growth of 6.9 percent.

The share of industry (including construction) and manufacturing in GDP remained generally stable at 28 percent and in the 14-16 percent range, respectively during this period.

The share of industry in total employment, however, increased from 16.2 percent in 1999-2000 to 21.9 percent in 2009-10 largely on account of expansion of employment opportunity in the construction sector from 17.5 million in 1999-2000 to 44.2 million in 2009-10. -- NNN-IANS

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