Finance Minister Shri Chidambaram hosted an interactive session to discuss ways of increasing industrial growth in India. Representatives from ASSCHAM, CII, FICCI and PHD Chamber of Commerce and Industry participated and offered suggestions.

According to revised estimates of the Central Statistical Organisation, real GDP growth in India accelerated from 7.5% in 2004-05 to 8.4% in 2005-06, with the services sector continuing to be the major driver of economic activity. An industrial growth rate of 8.7% was propelled by 9% growth in manufacturing activity. The manufacturing sector accounted for over 90% of the overall industrial sector growth.

Industrial growth in the first four years of the Tenth Plan (2002-2006) averaged 7.3%. Key sectors driving this growth in the Tenth Plan included chemicals, machinery and equipments, transport and auto parts and apparel. Among sectors that performed poorly were textiles, leather and metal products.