India At 60 Going Strong in Infrastructure

The popularity of India and China as investment destinations is rising, while the attractiveness of Europe and North America is slipping, says a study by the Ernst and Young.Since its liberalization in 1991, the Indian economy has been on an exhilarating ride. The country is in the midst of a remarkable growth phase. Gross domestic product grew at 9.4 percent in 2006 after exceeding 8 percent annual growth for the previous three years. A growing middle class and a skilled young workforce with increased purchasing power are helping to drive hyper-growth rates. In its Economic Outlook for 2007-08, C. Rangarajan,chairman of the Prime Minister's Economic Advisory Board, bet on a reasonably benign monsoon and conducive external conditions to facilitate growth of 9 percent for the third consecutive year.The foundation of economic, industrial and social development lies in the infrastructure of an economy. The multiplier effect of infrastructure development on the economy is, thus, significant. Road transport, telecom, housing, railways, power, steel, cement, bridges, townships, shopping malls, food parks, aviation and shipping, among others, all fall under the infrastructure sector.And if industry experts are to be believed, this is one sector, in India, which will be witnessing a remarkable growth in the next 10 years. So it goes without saying that the automation business continues rapid growth in India—in the range of 12 percent to 25 percent for most major automation companies.