Pleasantly surprised by the economic expansion in the second quarter, the government today said manufacturing has arrived in India and the country can now look forward to getting back at 9 per cent growth trajectory sooner.
Commerce Ministry's Department of Industrial Policy and Promotion
secretary Ajay Shankar said the growth reflects "the arrival of manufacturing in India and the extraordinary dynamism of the growth fundamentals of the Indian economy".
The economy clocked a robust 7.9 per cent growth in the second quarter, catapulted by a stimulus packages-powered strong industrial growth. And, manufacturing grew by 9.2 per cent against 5.1 per cent in the year-ago quarter.
"One can hope to get back to the 9 per cent growth trajectory soon than estimated earlier," he said at the 36th Joint Meeting of the India-Japan Business Cooperation Committee meeting organised by industry body FICCI.
Citing Finance Minister Pranab Mukherjee, Shankar pitched for maintaining the stimulus packages in the current fiscal. He said, "With the global economy improving, exports are likely to move into the positive direction soon".
The few exceptions among the export items that have shown a rise in recent months are the small, fuel-efficient cars. It signals the arrival of manufacturing in India, he said.
"India has become a global hub for development of fuel efficient cars. It is clearly a manifestation of change. India is being seen and recognised as a manufacturing hub in terms of cost, quality, design and product development," he said.
DIPP is a department, which formulates policy for foreign investment promotion.