Sectors
 
Agriculture
Agriculture is one of the strongholds of the Indian economy and is geared towards the second green revolution. Agricultural transformation in India is induced by rapidly changing consumption patterns, increasing availability and access to new and improved technologies and mechanization of farming systems, which are some of the key drivers. The 11th Five Year Plan (2007-12) witnessed an average annual growth of 3.6 per cent in the gross domestic product (GDP) from agriculture and allied sectors against a target of 4.0 per cent and much higher than the average annual growth of 2.5 and 2.4 per cent achieved during the 9th and 10th Plans, respectively. Growth has also been reasonably stable despite fluctuating weather conditions as observed during 2009 (deficient south west monsoon), 2010-11 (drought/deficient rainfall in some states) and 2012-13 (delayed and deficient monsoon). Increasing resilience of the agriculture sector has been largely attributed to the rise in gross capital formation (GCF) in this sector as a share of agri GDP (16.1 per cent in 2007-8 to 19.8 per cent in 2011-12 (at constant 2004-5 prices)). Average annual growth of private investment at 12.5 per cent during 11th Plan (first four years) was significantly higher as against the nearly stagnant investment during the 10th Plan. Total planned expenditure by the Department of Agriculture and Cooperation increased by 18 per cent from Rs 17,123 crore (US$ 3.18 billion) in 2011-12 to Rs 20,208 crore (US$ 3.75 billion) in 2012-13. The outlay for Rashtriya Krishi Vikas Yojana (RKVY) increased from Rs 7,860 crore (US$ 1.46 billion) in 2011-12 to Rs 9,217 crore (US$ 1.71 billion) in 2012-13. Further, Rs 1,000 crore (US$ 185.53 million) has been allocated for ‘Bringing Green Revolution to Eastern India (BGREI)’ initiative, compared to Rs 400 crore (US$ 74.22 million) in 2011-12.
 
 
Infrastructure
Infrastructure development as known is a critical precursor for sustaining the growth momentum, while at the same time ensuring inclusiveness of the growth process. It is estimated that lack of good quality infrastructure impedes India’s GDP growth rate by 1-2% per annum. Capacity enhancement in the country has witnessed a significant expansion over the last two decades. More importantly, investment in infrastructure as a percentage of GDP has risen from 4.9% in 2002-03 to over 6.79% in 2010 and is expected to reach the target of 9% of GDP by 2016-17. In the current Plan Period (2012-17), the investment in Infrastructure is envisaged to be US$ 970 billion, which would amount to around 10% of the GDP. 50% of this investment (US$ 453 billion) is expected from the Private Sector. To attract an investment of this magnitude, the Government has announced numerous positive interventions –introduction of Viability Gap Funding (VGF) scheme, setting up of India Infrastructure Project Development Fund (IIPDF) to create a pipeline of viable Infrastructure Projects and introduction of the National PPP Capacity Building Programme for capacity development of Government Officers. Some of the other Government initiatives include constitution of PPP Appraisal Committee and setting up of Indian Infrastructure Finance Company Limited (IIFCL). A visible outcome of all these measures is involvement of private Sector right in the preparatory stages itself.
 
 
Manufacturing
The role of manufacturing in driving India’s growth can hardly be overemphasized. While the share of manufacturing in India’s GDP has stagnated at 15-16%, the sector seems poised for immense growth in future owing to its eminent talent pool in science, technology and research. Even the Global Manufacturing Competitiveness Index, 2013, based on a survey of CEOs, executives and other officials of 550 global manufacturing companies, has positioned India as the second most competitive manufacturing nation five years down the line. The Government’s recognition of the potential of the sector and its multiplier effect is clear in its formulation of the National Manufacturing Policy, which aims at enhancing the share of manufacturing to 25% within a decade and creating 100 million jobs. The policy is particularly encouraging in its sharp focus on the role of states in enhancing manufacturing competitiveness. The 12th Five Year Plan also recognizes the vital role to be played by the States in this regard. The Plan further identifies building an eco-system for rapid learning and capability as the paradigm for India’s manufacturing strategy. With the vision and objective in place, sustained emphasis on execution will help manufacturing to reclaim its rightful place in the Indian economy.
 
 
Services
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.
 
 
Industrial Competitiveness
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.