CMIE industry analyst Samir Athalye said that Indian industrial growth is being driven largely by huge capital investments. “With income levels rising, companies are increasing their production. Further, Western countries now have a more positive disposition towards the Indian economy, thus creating larger FDI flows into the country. All this is likely to drive industrial growth and make it sustainable,” he added.

National Council for Applied Economic Research (NCAER) senior fellow Rajesh Chaddha views the current robust industrial growth phase as an indication of a major blue collar revolution in the offing.

“We have always remained resigned to a mere 15-17 per cent value addition to gross domestic product (GDP) by the manufacturing sector. However, it is time this changes — since a rapidly growing manufacturing sector would help reduce the burden of unemployment and make GDP growth sustainable and equitable.

“With large scale dereservation, especially of small scale industries, and improved infrastructure, industry is all set to witness the magical growth seen by the services sector in the last decade,” he explained.