Textiles among others, give 'striking' performance during Apr-Dec 2005
28 Feb '06
2 min read
Excerpts from the Review of Developments released under the Economic Survey by the Government of India, yesterday.
On Production
Performance of 17 industries at the two-digit level during April-December 2005 underlined a fairly broad-based pattern of growth within manufacturing.
Seven industries, accounting for almost 34 per cent of the total weight in IIP, grew at more than 10 per cent. The most striking performers were textile products (18.6 per cent), beverages (16.4 per cent) and basic metals (15.0 per cent).
Five industries, contributing around 18 per cent of the IIP, experienced negative growth during the first nine months of the current year, out of which, wood products, metal products, leather products, and food products, experienced the sharpest drops.
Issues and priorities
While significant progress has been made in the rationalisation of duties, reduction in the rates of taxes and other reforms, including procedural, the reform of the tax system still remains an unfinished task.
To be competitive globally, the Indian industry needs to be unburdened from the high levels of taxes and the distortive exemptions that provide perverse incentives.
The process of withdrawal or grand-fathering of exemptions is being speeded up and higher revenues have accrued even with unchanged or lower rates.
The process of simplification and digitization of tax administration, which has been initiated, remains a pre-requisite for a transparent and hassle-free tax system.
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