Coupled with greater access to foreign investment alongside improvements through trade liberalization, there is a significant growth in manufacturing exports as also the import intensity of exports. The corporate sector has thus become increasingly exposed to international product and factor prices.
Such market-driven pricing of products and factors combined with gradual reduction in rates of interest in an overall benign interest rate environment and moderate debt equity ratios have resulted in lower interest outgo. This, in turn, has promoted better resource allocation and efficient use of new technology, which has become reflected in their profit and efficiency parameters.