New Delhi, Nov 12 (UNI) Meeting the expectations of the economy, the manufacturing sector has moved on a high growth path during the last six months with about 65 per cent of the sector registering 10 to 20 per cent growth.
During April to September 2006, 34 sectors recorded growth of more than 20 per cent while 47 sectors clocked growth rate between 10 to 20 per cent. Thirty-one grew moderately by up to 10 per cent, according to CII Manufacturing ASCON survey of 125 sectors.
Sectors that recorded negative growth went down to 14 as compared to 20 during the corresponding period last fiscal.
In the basic and intermediate goods sector, PVC, switchgear, power cables, circuit breakers, castings, fluid power and nitroge showed strong growth. In the growth in the capital goods sector was led by boiler, distribution transformers, power transformers, tractors, industrial furnace etc.
The growth story in the domestic market spilled over to exports by the sector with 17 sectors registering 10 to 20 per cent growth in exports earinings.
Increasing investor confidence further helped the sector to mark an impressive growth. In the first quarter of the financial year, India received 2,896 dollars, 92 per cent higher than 1,510 dollars that were invested in the sector during the same period last fiscal.
''Last year most FDI went into the manufacturing sector. The trend seems to be quite irreversible. During the current fiscal, electrical equipment sector has already received 524 million dollars as compared to Rs 1,451 million dollars in the entire previous fiscal,'' CII Industry Council Chairman Satish Kaura said.
Looking at the growth rate registered across, it is almost certain that the Indian economy will experience robust growth on the back of a strong manufacturing sector, he added.
According to CII, most of the sectors are forecasting the same trend for the next five to ten years with some predicting a 20 per cent growth over the next 12 months.
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