Indian automobile manufacturing sector due for a boost

New Delhi, Jan 7 (ANI): Transport Minister Kamal Nath has said the high trajectory growth in manufacturing sector, especially automobiles, would boost an ambitious plan to build roads.

Talking to reporters on the sidelines of auto show here on Wednesday, Kamal Nath said:" This is a tremendous leap forward for the manufacturers sector and manufacturers sector which is sustaining employment generation in the economy is one of the example of resilience of the Indian economy. Where global economy is stressed, but in India, 100 new cars and 10 new launches is for the world to see."

He also said that the impetus in the manufacturing sector would boost the country's plans to build new roads to strengthen infrastructure.

India has the world's second largest road network at 3.4 million Km. the national highway network, which doubled in size between 1997 and 2007, stands at an impressive 70,000 km (43,500 miles).

After years of neglect, the Congress-led government voted back to power in May is pushing to build 20 Km of roads each day as part of its plans to improve infrastructure in Asia's third-largest economy.

Analysts estimate poor infrastructure shaves an estimated one or two percentage points off India's annual economic growth, which slowed to 6.7 percent in 2008/09 after three years of nine percent or more growth.

Under a 34-billion dollars program partly funded by the World Bank, some 375,000 Km of new rural roads will be built until 2010 and nearly the same length improved. (ANI)