Textiles, basic metals & alloys power India's strong economic performance
21 Apr '06
2 min read
Textiles, basic metals & alloys power India's strong economic performance
The Indian economy grew by 8.1% in FY2005, according to official estimates, says Asian Development Bank report released recently.
It states that:
“Price pressure has been building as the authorities are unlikely to have the resources to cushion domestic fuel prices from the full extent of fuel import price increases for much longer. On the supply side, growth will continue to be fueled by the opening up of space for private investment. India faces two key policy challenges as the economy undergoes a structural transformation.
First, it must continue consolidating its fiscal position. It will have to do so while ensuring both adequate hard infrastructure improvements to support industrial and high-skill services development, and public investment to advance rural productivity and human development.
"Second, it needs to improve the investment environment by lowering the cost of doing business. Growth rates of 7.6% in FY2006 and 7.8% in FY2007 are forecast. The annual average growth rate over 2006–2010 is unlikely to exceed 8–8.5%.”
Turning to industry sector – textiles and clothing, the Asia Development Report 2006 on India states:
“The industry sector, which accounts for approximately 26% of GDP grew by 9.0%. This strong performance was driven by manufacturing, which accounts for about four fifths of industrial output."
Textiles, basic metals and alloys, and transport equipment were the fastest-growing product categories.
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