• Linkdin

Positive signs of India industry moving towards recovery

02 Jul '09
6 min read

India ranks as the fifth largest producer of steel in the world. The crude steel production grew at an annual rate of 9.2 per cent during 2003-04 to 2007-08. The increase in production came on the back of capacity expansion, mainly in the private sector plants, and higher utilization rates.

Metal products industry suffered from the second consecutive year of decline; its index of production declined by 5.6 per cent in 2007-08 and further by 4 per cent in 2008-09.

The machinery sector (except the transport equipment) grew at 8.7 per cent during 2008-09, on the top of five consecutive years of growth in excess of 10 per cent. In terms of contribution to the growth of the sector, the bulk was accounted for by insulated cables and wires, the production of which more than doubles, as per IIP during 2008-09. The other important items that recorded significant growth during the year included TV receivers, diesel engines, industrial machinery, turbines, hydraulic machines and cylinders, boilers, power-drivern pumps, electric generators, cooling towers, cutting tools and dumpers.

The year 2007-08 was marked by substantial growth in the revenue of IT-ITeS industry, BPO, software and services exports and software and services employment. However, the expected growth in 2008-09 is significantly lower when compared to 2007-08.

Production of the automotive industry grew at a CAGR of 11.5 per cent over last five years. The industry has a strong multiplier effect on the economy due to its deep forward and backward linkages with several key segments of the economy.

There are positive signs that the Indian industry may have weathered the most severe part of the shock and is now moving towards a recovery. Some of the positive signs are the recent upturn in the generation of electricity, the improvement of cement dispatches and rise in the offtake of bank credit.

India has a large domestic market with immense absorptive capacity for industrial goods as also inputs for the development of the infrastructure implies that the demand side provides scope for expansion. At this juncture, when the prospect for industrial output and prices in most industrial economies seem to be grim, the configuration of prices, output and market size makes the Indian industry one of the few attractive destinations for investment, the Survey adds.

Press Information Bureau

Leave your Comments

Esteemed Clients

TÜYAP IHTISAS FUARLARI A.S.
Tradewind International Servicing
Thermore (Far East) Ltd.
The LYCRA Company Singapore  Pte. Ltd
Thai Trade Center
Thai Acrylic Fibre Company Limited
TEXVALLEY MARKET LIMITED
TESTEX AG, Swiss Textile Testing Institute
Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)
Taiwan Textile Federation (TTF)
SUZHOU TUE HI-TECH NONWOVEN MACHINERY CO.,LTD
Stahl Holdings B.V.,
Advanced Search