By KUNA,
New Delhi : In what could further boost the country’s economy, India’s manufacturing sector is likely to grow by 9.5 per cent in 2008-09, according to a survey released Sunday by a leading trade body.
“Of the 100 sectors surveyed, as many as 67 are poised to achieve excellent to high growth rates ranging from 10 to 20 per cent or more. While 12 sectors project excellent growth of more then 20 per cent, 55 foresee high growth of 10 to 20 per cent, 32 sectors expect moderate growth of up to 10 percent and one sector has projected negative growth during 2008-09,” according to the survey carried out by India’s leading business chamber Federation of Indian Chambers of Commerce and Industry (FICCI), unveiled here today.
“The manufacturing industry would be able to revive and achieve higher growth during the terminal period of the financial year 2008-09 provided the government takes some pro-active reform measures to redress the genuine grievances of the manufacturing industry”, the survey said.
“While the farm loan waiver scheme by the government and the proposed salary hikes of government employees will help generate more demand for manufactured items, there is need for stimulating consumption reducing interest rates and no further cuts in custom duty on manufactured goods,” the FICCI said. “There is the need for ensuring relief package for exporters, increasing rate of depreciation, reducing corporate tax rate and correcting anomalies due to inverted duty structure existing in the tax structure,” the trade body proposed.