While the consumer durables sector had withstood the slump of the last two years, cars and auto parts have shown remarkable recovery. Perhaps another indication of the overall recovery in the economy is the growth rate of 68 per cent reported by the heavy vehicles sector. Which means that people are investing in trucks. This will happen only if more goods are being transported. Perhaps it is worth finding out whether more and more of the existing capacity is being used after the slump of the last two years or whether new investment has taken place in installing new equipment and acquiring new technology.
Exports present a mixed scenario.
While software, steel and commercial vehicles remain strong, laggards include processed fruits and vegetables, paper and malted food. While these hopeful signs become evident in Indian industry, the same cannot be said about agriculture. Equally dismal has been the power sector, what with prolonged periods of power cut in Delhi, Kerala and some other states. Yet another development of some significance is the bilateral trade agreement between the US and India. The agreement lifts all quantitative restrictions on imports from the US by India.