Accelerating growth

An export-led backward integration strategy for manufacturing and business services is essential for accelerating economic growth

The Economic Survey and the Budget speech have both focused attention on the need to boost the growth rate beyond its current 6-7 per cent band. The goal of becoming a $5-trillion economy in five years is clearly the driving force of economic policy now. But the growth rate of 10-11 per cent required for this target is not possible without a substantial increase in the production of manufactured goods and tradeable services, quite apart from radical improvements in infrastructure, capital markets, and labour mobility that would be needed.
 

At the macro level, the share of manufacturing in GDP has