The pre-Budget Economic Survey on Thursday unveiled a six-point strategy including rapid closure of failed companies to further industrial recovery, which has registered an impressive 5.3 per cent growth during the first eight months this fiscal.
While the index of industrial production displaying some definite signs of a pick-up during April-November 2002 on account of a revival in capital goods, steel and cement, the Survey tabled in Parliament, said the outlook for industrial growth would depend on the evolution of economic policy framework.
Continued progress on infrastructure, movement towards low and uniform customs tariff, value added tax regime, reform of labour laws, elimination of small scale reservation and framework for swift resolution of failure were six elements which, it said, would foster productivity and industrial growth.
The survey commended India's success in export of services, based on strengths in higher education and access to low-cost manpower, but cautioned that though encouraging signs of success in manufacturing exports were visible in 2002-03, "a strong surge of export-led growth in labour-intensive manufacturing could come about if key policy ingredients are put in place."
Referring to the improved industrial growth, it said an important feature was the success of textile products which, after a decline of 2.5 per cent in the previous year, showed a sharp turnaround with a growth of 14.8 per cent up to November 2002.
PTI