19-02-2013, 04:03 PM
SURVEY CALLS FOR BOOSTING OF BUSINESS SENTIMENTS, ENCOURAGING
INVESTMENT AND IDENTIFYING BOTTLENECKS
ABSTRACT
The Economic Survey 2011-12 tabled in the Lok Sabha here today by the Finance
Minister, Shri Pranab Mukherjee has projected the industrial-sector growth during the current
financial year to be between 4 to 5%. At this rate, says the Survey the annual growth rate
will be less than the annual growth rates achieved in the recent past and far below the
potential growth rate.
The Survey has said that the challenge for the sector in the short term would be to
shore up of business sentiments, spur investment in productive activities and identify
bottlenecks that can be removed in a reasonably short period of time. 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.
According to the Survey, the long term average annual growth of industries
comprising mining, manufacturing and electricity has in general remained aligned with the
overall GDP growth rate during the post reform period between 1991-92 and 2011-12,
averaging 6.7% as against GDP growth of 6.9%. The share of industry (including
construction) and manufacturing in GDP remained generally stable at 28% and in the 14-16%
range respectively during this period. The share of industry in total employment, however,
increase from 16.2% in 1999-2000 to 21.9% 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.