Vision for industrial growth in budget 2019–20

The budget articulates a vision for the growth of the manufacturing sector which is built on three pillars: (i) increase in investments, private investments in particular, (ii) enabling of conditions for small firms to grow and move into the next strata, and (iii) enhancement of the rate of growth of exports. However, as it turns out the vision has been clouded by some illusions. The challenge of growth acceleration of the industrial sector is confounded by the fact that factor augmentation is at a slow pace despite an increase.