NEW DELHI: A surge in foreign investment inflows and robust consumer demand has helped 60% t of India’s manufacturing sector to post double digit growth during April-December 2006, a survey showed on 6 February 2007. Output of 28 of 122 manufacturing sectors have grown by more than 20 % and 45 sectors expanded by 10-20 %, the Confederation of Indian Industry (CII), a trade body, found in a survey.
“Key industries in the manufacturing sector have been registering strong performance, driven by both consumption and investment-led domestic demand,” the survey said.
“Increasing investor confidence has further helped the Indian manufacturing sector to achieve spectacular growth,” it said adding foreign investment inflows more than doubled to $7.23 billion during April-November 2006.
Electrical equipment, pharmaceuticals, fuels, food processing, cement and chemicals attracted the highest percentage of FDI, it added.
In April-December 2005, about 50 % of the manufacturing sectors posted double digit growth.
“Almost every sector is forecasting a growth trend over the next five-to-ten year period with some predicting a 20 percent growth rate over the next 12 months,” it said.
“With better performance, there is little doubt that the Indian economy will experience robust growth on the back of a strong manufacturing growth.”
Indian economy expanded by an annual 9.1% during April-Sept. 2006 riding a 11.6 % manufacturing output growth.
India is aiming at 12 % growth in factory output in the coming years to attain a double digit economic growth.