The manufacturing growth rate has also doubled in 5 years – from 6% in 2002-03 to a record 12.3% in 2006-07.  “This augurs well for the 11th Plan, which envisages a growth of 12% for the Manufacturing Sector”, Shri Kamal Nath, Union Minister of commerce & Industry, has said.  

As per the Quick Estimates of Industrial Production released by the Central Statistical Organization, India’s industrial production registered a high growth of 12.9% in March 2007, as compared to 8.9% in March 2006.  Industrial growth during the financial year 2006-07 (April 2006 to March 2007) went up by 11.3% as compared to 8.2% registered in the previous year.  This is the highest growth of the industrial sector since 1995-96.The industries which have shown an excellent performance in March 2007 include  ‘Wood and Wood Products; Furniture and Fixtures’ (113.9%),  ‘Metal Products and Parts, except Machinery and Equipment’ (47.5%),  ‘Food Products’ (23.7%), ‘Basic Metal and Alloy Industries’ (23.3%) and ‘Cotton Textiles’ (21.2%).  Among the use-base economic sub-groups, Consumer Non-Durables have registered an impressive growth of 18.5% during March 2007 over March 2006.  The Intermediate Goods and Capital Goods have also recorded a high growth of 13.3% and 13.2%, respectively. 

INDIA’S STATEMENT AT WTO TRADE POLICY REVIEW:  HIGHLIGHTS

Continued policy reforms and institutional development are a sine qua non for sustained economic growth in India.   In his opening statement on behalf of India, at the World Trade Organisation (WTO)’s Trade Policy Review for India held in Genera from 23-25 May, 2007, Shri G.K. Pillai, Commerce Secretary, said: “We are of the view that continued and sustained growth of the Indian economy is not only good for India but also for the rest of the world.  We also believe that in a more integrated global economy, it is necessary that other less developed countries also grow significantly so that they are able to get the benefits of globalization.  The Government of India is acutely aware that there is no inevitability of high growth and that sustained rapid growth cannot be taken for granted.  For sustained economic growth, there is need for continual reform as well as a matrix of institutions and public policies tailored to the new needs of the economy.  As brought out in the trade policy report, a slew of policy reforms have indeed been implemented over the last decade.  There have been changes of Government over the last fifteen years, however, the momentum of economic reforms has not abated.  In a vibrant and complex democracy such as India, the reform process can and will have some fits and starts but the overall direction of the Indian economic reforms has always been positive”.            

Referring to non-tariff barriers to imports from developing countries, the statement said that non-tariff barriers in the form of restrictive regulations were impediments that significantly affected not only exports but also the capacity to trade and as a result, even after more than two decades of rapid trade growth, the pattern of trade remained highly skewed in favour of the developed world.   “High-income countries representing 15% of the world’s population still account for two-thirds of world exports. The share of world exports of Sub-Saharan Africa, with 689 million people, is less than one-half of that of Belgium, with 10 million people”, the statement added.

 “We have a historic opportunity to partially correct this imbalance in the current Doha Development Round.  India is extremely concerned at the slow pace of negotiations.  While the suspended talks have resumed, the political will on the part of developed countries is still not evident.  Unless the development dimension of the Doha Round is met and the developing countries prosper, global trade will always be at risk.  The rapid economic growth of developing countries is a must for a truly global trade order to flourish.  India stands committed to meet its obligations under the mandate of the July Framework and the Hong Kong Ministerial Declaration.  Developed countries must recognize that our destinies are intertwined”, the statement said.