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MACHINIST - Economic Survey suggests measures to step up industrial growth

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Home arrow News arrow Govt. levys, taxes and budget arrow Economic Survey suggests measures to step up industrial growth

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Economic Survey suggests measures to step up industrial growth
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Written by Hari   
Saturday, 01 March 2008

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The Economic Survey 2007-08 has said that the real challenge before the country lies in strengthening the foundations of sustained industrial growth. One of the biggest challenges to sustaining and stepping up industrial growth lies in removing the infrastructural impediments in road “ both rural and urban “ rail, air and sea transport and power.

Expressing concern over slowdown in the consumer goods segment of industry and infrastructure constraints, the Economic Survey calls for additional reforms to raise growth to double digit.

The industrial sector witnessed a slowdown in the first nine months of the current financial year. The growth of 9 per cent during April-December 2007, when viewed against the back drop of the robust growth witnessed in the preceding four years, suggests that there is a certain degree of moderation in the momentum of the industrial sector.

The Survey has pointed out that growth in infrastructure not only alleviates the supply side constraints in industrial production, but also stimulates additional domestic demand required for industrial growth. Another issue in industrial growth is the swiftness and efficacy with which the skill deficit felt in many areas of manufacturing is bridged. This will facilitate research and development and technological innovations, which are urgently called for in important industries like chemicals, automotives and pharmaceuticals.

The Economic Survey has also said that there is an imperative need to facilitate the growth of labour intensive industries, especially by reviewing labour laws and labour market regulations. This is particularly important in reversing the current not-so-encouraging manufacturing employment trends. Besides, the growth in many industries is constrained by the acute scarcity/depleting reserves of important raw materials like coal, iron ore, natural gas and forest resources. The Survey feels that sectorally differentiated initiatives may be required for skill upgradation, supply augmentation of inputs and promotion of research and development.

 
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