New Delhi: A report by the United Nations Conference on Trade and Development (Unctad) has projected a 6.5 per cent economic growth rate for India against 9 per cent growth for China during 2005. It has also warned that the Indian information technology industry may remain trapped at the low-end of the market.

"The Indian IT industry will export low-end services such as debugging, testing, conversion and software installation, but import expensive branded software and hardware products," the report has said.

The report suggested that technology should be upgraded to support diversified and higher value-added production to maintain economic growth. The report highlighted that competition in manufactured exports would intensify, as other developing countries had also begun to produce labour-intensive goods.

It said the share of the manufacturing sector must go up to sustain a high growth rate in the medium to long term.

The report pointed out that China's and India's rapid growth had been a key cause of the recent surge in primary commodity prices, but growing imports by Beijing and New Delhi would not be enough to reverse a long-term decline in real commodity prices.

It warned that a massive exchange rate appreciation in China and other Asian developing countries could have a deflationary impact on the world economy.