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India needs $135 B in manufacturing
By agencies
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Thursday, 03 August 2006, 19:30 IST
NEW DELHI: The Commerce and Industry Minister, informed that India's manufacturing sector will need massive investment of $135 billion over the next five years, to support economic growth of more than 8 percent.
India's manufacturing sector has shown a growth of 9.1 per cent in the2005/06 fiscal year, compared with 9.2 percent in the previous year. In the April-May period, it recorded a increase in growth by 10.9 percent.
India is all set to achieve a 12 percent growth in manufacturing. It is looking to enhance its GDP growth from 8.4 percent in 2005/06, to 10 per cent in the coming years.
A government-appointed panel had projected that India required $1.5 trillion -- including $72 billion in Foreign Direct Investment (FDI)-- of investment in all sectors over a similar period.
Apart from allowing FDI up to 100 percent in most industries, the government has initiated a few measures to boost manufacturing, such as improving infrastructure and developing growth centers.
The Commerce and Industry Minister, Kamal Nath informed that proposals are in the pipeline for setting up of petroleum, chemicals, petrochemicals investment regions, and manufacturing investment regions, which is still in its conceptual stage.
"Foreign Direct Investment, apart from bringing in capital, also brings with it modern technology and business practices and helps in increasing the competitiveness of domestic industry," Nath said in a written reply to Parliament.