Manufacturing Powers Industrial Growth
The industrial sector registered a 11.7% growth in June 2005, the highest ever recorded since 1996 (the growth rate for the same period in 2004 was 7.3%). Industrial growth is being driven by a spurt in manufacturing, helped in large part by the 38% growth in the textile sector, which has been able to take advantage of the liberalised WTO textile quota regime. This is excellent news for the economy, since rapid growth in manufacturing is key to achieving China-like growth rates in the near future, not to mention the impact it can have on employment.
It seems like the monsoons are pretty normal this year. Services continue to grow at a fast clip. The industrial and manufacturing sector seems to be registering growth not seen in almost 10 years. Maybe the consensus figures of 6.8% GDP growth for the year will prove to be an underestimate?
I hope, it is an underestimate as well. Let us pray that the Rains will keep the agri on the rise as well and there are no more natuaral calamities to peg back the growth
Comment by @mit — August 15, 2005 @ 12:51 pm