Even as there are signs of revival in the industrial sector, Indian industry leaders and economists are unanimous that fresh investment in green field projects is a year or two away at least, as huge capacities were still being under utilised.

"Investments will be in capacity expansion, improving processes and mergers and acquisitions. There is a heavy under-utilisation of capacity in the country," Philips India managing director K Ramachandran said.

"For us, capacity available is 365 days x 24 hours and not one or two shifts. Consumer product consumption should register a consistent 12-16 per cent growth over eight quarters," he said on Tuesday night at the 'Managing India Brainstorm VII,' organised by CNBC India TV 18 channel.

ABB managing director Ravi Uppal said there would be investments 'which are substantial' to improve productivity and efficiency of core sector firms, but it will be another 12-18 months when 'real investment in thousands of crores in the core sector will take place.'

Titan Industries vice chairman Bhaskar Bhat said firms would 'smart source' from countries which can offer products and components cost effectively to augment their growth, but added, that investments were happening in the 'retail segment' in stores and marketing.

Citing an example of how 'under utilised' Indian firms were and efficiencies were being improved by the manufacturing sector, Crisil CEO Ravi Mohan said that in the 1980s, the top five companies which had a market share of 15 per cent and 27 per cent in 1995, now control 65 per cent of the market.

"This has been achieved by consolidation, improved productivity, systems and processes. They still will look at adding capacity by expansion of acquisitions, not with fresh investments," Mohan said.