07-31-2006, 06:01 AM
<!--QuoteBegin-->QUOTE<!--QuoteEBegin-->link<b>'Unlock' infrastructure to grow @10% </b>
Reuters
Posted online: Sunday, July 30, 2006 at 1822 hours IST
New Delhi, July 30: India needs more reforms and lower taxes if the core infrastructure sector -- from energy to steel -- is to grow at more than 5 per cent in 2006/07, the Federation of Indian Chambers of Commerce and Industry (FICCI) said on Sunday.
The infrastructure sector is key for Asia's third-largest economy to hit 10 per cent growth, up from 8.4 per cent in 2005/06.
<b>Combined growth of six infrastructure sectors -- oil and gas, crude oil, electricity, coal, steel and cement -- was 4.9 per cent in 2005/06. </b>
The FICCI said higher core growth would also benefit the engineering and services sectors.
An FICCI survey of Indian business shows the oil and gas sector growing at 0.8-1.4 per cent in 2006/07, versus a 1.4 per cent fall in output in 2005/06.
Crude oil production should rise 0.5-1.2 per cent in the year to March 2007, versus a 5.2 per cent drop a year earlier, it said.
India imports about 70 per cent of its fuel needs, and rising world oil prices will push up its import bill and put pressure on the rupee. Higher domestic output could help India trim imports, the federation said.
The FICCI said a New Exploration and Licensing Policy (NELP) was yet to yield results and the government should introduce more liberal packages to boost domestic production.
The coal sector is projected to grow at 6.5-7 per cent in 2006/07, up slightly from 6.4 per cent a year earlier, the FICCI said, while electric power should grow 5.5-6 per cent, up from 5.1 per cent in 2005/06.
Steel output should rise 7-8 per cent, up from 6.5 per cent.
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Reuters
Posted online: Sunday, July 30, 2006 at 1822 hours IST
New Delhi, July 30: India needs more reforms and lower taxes if the core infrastructure sector -- from energy to steel -- is to grow at more than 5 per cent in 2006/07, the Federation of Indian Chambers of Commerce and Industry (FICCI) said on Sunday.
The infrastructure sector is key for Asia's third-largest economy to hit 10 per cent growth, up from 8.4 per cent in 2005/06.
<b>Combined growth of six infrastructure sectors -- oil and gas, crude oil, electricity, coal, steel and cement -- was 4.9 per cent in 2005/06. </b>
The FICCI said higher core growth would also benefit the engineering and services sectors.
An FICCI survey of Indian business shows the oil and gas sector growing at 0.8-1.4 per cent in 2006/07, versus a 1.4 per cent fall in output in 2005/06.
Crude oil production should rise 0.5-1.2 per cent in the year to March 2007, versus a 5.2 per cent drop a year earlier, it said.
India imports about 70 per cent of its fuel needs, and rising world oil prices will push up its import bill and put pressure on the rupee. Higher domestic output could help India trim imports, the federation said.
The FICCI said a New Exploration and Licensing Policy (NELP) was yet to yield results and the government should introduce more liberal packages to boost domestic production.
The coal sector is projected to grow at 6.5-7 per cent in 2006/07, up slightly from 6.4 per cent a year earlier, the FICCI said, while electric power should grow 5.5-6 per cent, up from 5.1 per cent in 2005/06.
Steel output should rise 7-8 per cent, up from 6.5 per cent.
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