India's manufacturing sector has registered a record growth rate of 12.1 per cent while foreign direct investment (FDI) has grown by about 100 per cent in the first half of the fiscal 2006-07, it was announced on Monday.
"During April-September 2006, the equity component of the FDI inflows in the country was $4.4 billion as compared to $2.2 billion during the corresponding period of the previous year," Commerce and Industry Minister Kamal Nath said.
The growth rate is unprecedented for any six-month period.
"During the first six months of the current financial year, the manufacturing sector has grown by 12.1 per cent compared to 9.5 per cent during the same period of last year," Kamal Nath told reporters here.
"It is for the first time that the six-monthly rate of growth of manufacturing in India has exceeded 12 per cent," he said.
Manufacturing accounts for about 80 per cent of India's industrial production, while mining and electricity account for approximately 10 per cent each.
"The growth rate of industry and especially the manufacturing sector in the last two years exceeded the overall growth rate of the economy. The performance on both these fronts shall only improve in months and years ahead," he said.
"Both these sectors are playing an important role in driving the Indian economy on the path of growth. These sectors are also known for generating a large number of jobs," he added.
For the month of September 2006, the FDI inflows have been $916 million, up by 225 per cent from $282 million received during September 2005, the minister said.
The growth rate of industrial production during the first half of the current fiscal has been pegged at 10.9 per cent, compared to 8.5 per cent registered in the same period last year.
The half-yearly growth rate of industrial production exceeded the 10 per cent mark for the first time in the past decade, the minister said.