Agriculture
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Agriculture is one of the strongholds of the Indian economy and it accounts for 18.5 per cent of the gross domestic product (GDP). The average growth rate of agriculture and allied sectors during the last two years i.e., 2006–07 and 2007–08 has been more than 4 per cent as compared to the average annual growth of 2.5 per cent during the 10th Five-Year Plan. The current revival in agriculture sector has been possible mainly due to a number of initiatives taken in the recent years. While public sector investment in the farm sector has grown from 1.8 per cent of sectoral gross domestic product (GDP) in 2000–01 to 3.5 per cent in 2006–07, private sector investment has increased from 8.9 per cent in 2003–04 to 9.9 per cent in 2006–07. According to a Rabobank report the agri-biotech sector in India has been growing at a whopping 30 per cent since the last five years, and it is likely to sustain the growth in the future as well. The report further states that agricultural biotech in India has immense potential and India can become a major grower of transgenic rice and several genetically engineered vegetables by 2010. The food processing sector, which contributes 9 per cent to the GDP, is presently growing at 13.5 per cent against 6.5 per cent in 2003–04, and is going to be an important driver of the Indian economy. |
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Infrastructure
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The key to sustaining India's growth rate during a global meltdown lies in developing India's infrastructure. Keeping this in mind, the government is targeting an investment of US$ 20.38 billion over the next two years in the infrastructure sector. The scheme aims to take up infrastructure projects under public-private partnership (PPP) with minimal private investment. The government has asked the Infrastructure Investment Finance Company Ltd (IIFCL) to put together a corpus of over US$ 8.15 billion for this purpose. IIFCL plans to provide US$ 1.2 billion for infrastructure projects during 2009-10, which is nearly double the amount disbursed by it during 2008-09. The company had disbursed US$ 640.8 million for various projects during 2008-09. This is in addition to the US$ 320 billion that the government plans to invest for the upgradation of ports, railroads, highways and airports over the next 15 years. Further, the core sector growth is back on track. The index for six core industries—crude oil, petroleum refinery products, coal, electricity, cement and finished carbon steel—has turned in a growth of 2.9 per cent in March 2009 over March last year. |
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Manufacturing
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India is fast emerging as a global manufacturing hub. India has all the requisite skills in product, process and capital engineering, thanks to its long manufacturing history and higher education system. India’s cheap, skilled manpower is attracting a number of companies, spanning diverse industries, making India a global manufacturing powerhouse. India with its vast design skills has attracted a lot of outsourcing technological orders. According to a UNIDO analysis based on 2007 figures mentioned in the International Yearbook of Industrial Statistics 2009, India ranks among the top 12 producers of manufacturing value added (MVA). In textiles, the country is ranked fourth after China, USA and Italy, while in electrical machinery and apparatus, it is ranked fifth. It holds sixth position in the basic metals category; seventh in chemicals and chemical products; 10th in leather, leather products, refined petroleum products and nuclear fuel; twelfth in machinery and equipment and motor vehicles. Manufacturing still contributes around 15 per cent of GDP of the country. Quarterly estimate of GDP for October-December (Q3), 2008-09, according to the Central Statistical Organisation data, for manufacturing stood at US$ 38.1 billion at current prices. According to the data, manufacturing index for the period April to March 2008-09 stood at 2.3 per cent. |
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Services
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The services sector has been at the forefront of the rapid growth of the Indian economy, contributing nearly 63 per cent of the GDP in 2007-08. The sector has come to play an increasingly dominant role in the economy accounting for 59.6 per cent of the overall average growth in GDP in the last eight years between 2000-01 and 2007-08. As per the Central Statistical Organisation, the services sector has continued to grow in the fourth quarter of 2008-09. Trade, hotels, transport and communication grew 6.3 per cent in January-March 2009 from a year earlier, vs. 5.9 per cent in October-December 2008. Financing, insurance, real estate and business services grew an annual 9.5 per cent in January-March, 2009 vs. 8.3 per cent in October-December 2008. Lead indicators suggest that the pace of expansion in the services sector activity is likely to be sustained even in the next financial year. Foreign tourist arrivals (FTAs) during January to June 2009 were 2.5 million. Railways freight traffic increased to 833.03 million tonnes during fiscal 2008-09 from 794.21 million tonnes carried during 2007-08, an increase of 4.89 per cent. At the end of April 2009, the total number of telephone connections reached 441.47 million, registering an overall tele-density of 37.94. Cargo handled at major ports during April–December 2008–09 has been 391.80 MT as against 378.82 MT in the corresponding period last fiscal. The prospects for growth in the Indian services sector over the next year continues to be robust, according to a survey by KPMG, conducted across the BRIC (Brazil, Russia, India and China) countries in spring 2009. The survey revealed that 31.3 per cent Indian companies saw their activity levels improving. Around 37 per cent forecast new order growth in one year’s time, compared with 16 per cent that anticipate a fall. Even capital expenditure at Indian services firms is anticipated to rise in the year ahead, with 43 per cent of companies saying they plan to increase spending on fixed assets. Revenues are expected to grow by 31.1 per cent of firms, while 32.5 per cent believe their profits will increase. |
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Industrial Competitiveness
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Competitiveness is a comparative concept of the ability and performance of a firm, sub-sector or country to sell and supply goods and/or services in a given market. Since the year 1988, before liberalisation kicked in in 1991-92, CII proactively decided to encourage competitiveness of its member companies by setting up services that would encourage firm level "competitiveness". This has been done through a steady build up of (a) Creating Awareness (b) Training and consultancy, and (c) Recognition for industry at large with a strong focus on its membership. The first service was set up in 1988 on Total Quality Management. This was followed by the Environmental Services, WTO/FTA Advisory service, Business Excellence, Technology, IPR, Energy Management, Total Cost Management, Total Productive Maintenance, Green Building Services, Six Sigma, Skill Building in Measurement Practices & Legal Metrology, Water Management, Logistics, Skill development across sectors for white, blue, grey and rust levels. TQM services specialised for Health and Education sectors are also available through a group of specialists. Close to 200 specialists at all levels such as Advisers, Principal Counselors, Senior Counselors, Counselors and Engineers provide these services to Industry. |
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