But we have not abandoned the MCI as an indicator of monetary conditions, and we intend to continue using it to illustrate how we see monetary conditions evolving over the period covered by our projections. Moreover, we do not accept that the MCI ‘caused’ the brief recession in the first half of 1998.
In the coming years, India is expected to witness significant demographic growth and a disproportionate expansion in the working age population. To absorb much of this labour force, the manufacturing sector would need to play an important role. Currently, the sector accounts for 12% of the total employment in the country and also provides a transitional opportunity to the labour force in agriculture.