Confederation of Indian Industries said on Monday that the economy has shown clear signs of a turnaround over the last four quarters with sales, net profit as well as margins rising steadily, but to accelerate the rate of growth, industry must significantly increase its share of GDP.

CII's chief economist Onkar Goswami while addressing the World Economic Forum in New Delhi said, that for India to achieve eight per cent growth by 2010, the share of industry to GDP must go up to 33 per cent from 11 per cent at present while mentioning the areas, which have fuelled the growth: auto components, two wheelers and some sections of automobiles, pharmaceutical companies and steel.

However, among challenges to achieving the eight per cent growth target were high tariffs, skewed fiscal policy, and poor infrastructure.

Speaking on the occasion, industry secretary Rajiva Ratan Shah said innovation and investment in technological research and development were key to faster growth.

While agreeing with the optimism expressed by industry and economists on growth, Cummins India chairman Ravi Venkatesan said India needs to deliver enduring and sustainable competitive advantage.

He said India needs to have a sharp focus on customers, invest in technology and seize big opportunities, which might be fraught with equally big risks.

Indo Rama Synthetics chief O P Lohia said his company had begun using international best practices in outsourcing, specially in those areas where Indo Rama was not strong itself.

Bharat Forge chairman and managing director Baba Kalyani said Indian manufacturing needs to stop looking inwards and develop scales in line with global expectations.