Economic recovery is in the air all around the world. A survey conducted on the Indian economy recently showed that the industrial sector is set to grow at a healthy pace, now when the recovery is just round the corner. The industrial sector also stood firm in the times of slow down. The sector is now set to perform well because of the increase in demand.

While on the other hand, causing concerns on the employment front the labour intensive sectors such as the food, paper, leather, jute & cotton textiles and metal products have not been able to fully recover. The short term packages surely increased trade but now when the news of withdrawing them is round the corner, the sector is asking for more to be done in terms of changes on fundamental policy front like the lowering custom duties, and weeding out the exemptions.

Liberalizing and encouraging foreign investments in these sectors will surely give them a boost, while lowering of excise duties will help them survive. The survey also suggested lowering the peak duties from 10 percent to 7.5 percent while tariffs on capital goods should be a uniform 3 percent.