The double-digit growth in the CG industry since 2003-04, indicates that capital formation was taking place in the industrial sector, which could help in strengthening the upswing.
Industrial buoyancy was expected to continue during the remaining period of this fiscal with a strong growth of 21.9% machinery and equipment sub-sector during April-December. Also, the share of machinery has increased in the non-oil imports, indicating stronger economic activity in the country.
The trend is also seen in the increase in exports of manufactured goods.
| Domestic production, imports of capital goods show major jumps |
Trend reflects capital formation in the industry
Process evenly spread across sectors
The strong performance of the (domestic) capital goods sector coupled with increased imports of such goods also augur well for domestic capacity expansion for a large number of industries.