Manufacturing sector reports high growth rate

New Delhi, Jul 16: As many as 34 sectors out of the total 140 in the manufacturing segment reported a high growth rate during April-June 2006 as compared to the corresponding period last year, according to a study.

Citing that the manufacturing sector has reported a balanced growth, the study added that 56 sectors recorded a growth rate of 10-20 per cent, 36 sectors registered moderate growth rate of 0-10 per cent while about 14 sectors reported a negative growth.

According to the ASCON survey conducted by industry chamber Confederation of India Industry (CII), lead and lead alloy, sponge iron, switchgears, motor starters, circuit breakers, power transformers, textile machinery, cars, microwave ovens, DVD players, beer, cellular services and housing finance were in the excellent growth category.

Paints, polymers, plastics, industrial valves, industrial gases, water equipment, drugs and pharmaceuticals were all in the high growth category.

The survey furhter said out of the 78 sectors reporting sales, 26 sectors registered excellent growth, 28 sectors registered high growth, and 18 sectors reported moderate growth while 6 sectors recorded low or negative growth.

Nitrogen fertilizer, soda ash, boilers, transmission line towers, vehicle industry, beer, housing finance and personal computer were some of the sectors in the excellent sales growth category.

Those in the high sales growth category include diesel, paints, pig iron, plastics, ceramics, tractors, drugs and pharmaceuticals and computer hardware.

Caustic soda, nylon filament yarn, earthmoving and mining equipment, scooters, and newsprint recorded negative sales growth.

However, the manufacturing industry is showing a dip in the exports as compared to the results in the last quarter. The survey indicated that 16 sectors have shown excellent growth in exports.

There were 10 sectors in the high growth category, 11 sectors recorded moderate growth, while 4 sectors registered a fall in exports.

Cement, abrasives, auto components, fluid power, cars, flat glass, motor cycles are sectors, which have done well on the export front. Those in the high growth category include mining equipment, drugs and pharmaceuticals. Soda ash, scooters, mopeds and electrical fans reported negative growth in exports.

The survey also said the consumer durables sector has scored more in the excellent growth category than the corresponding period last year.

UNI