Electronic, Steel, IT industry show buoyant performance in Karnataka

Bangalore, May 1 (UNI) Registering an impressive 20-25 per cent production growth, Karnataka's Electronics, Steel and IT industry have been buoyant during October 2006 - March 2007 according to a survey by the Confederation of Indian Industry (CII).

The Biannual Industry Monitor Survey forecast a robust 25 per cent growth in production for the Electronics, IT and Steel industry in Karnataka during April-September 2007.

CII carried out the Survey to analyse the performance of the top five sectors of the Southern Region States during October 2006-March 2007 and to provide an outlook for April-September 2007 while identifying their issues and concerns. The key sectors identified were automobile and auto components, IT, engineering, electronic and steel industry.

The steel industry in Karnataka has shown buoyant performance during October 06-March 07, indicated by 20-25 per cent increase in production, 15-20 per cent increase in sales and 15-20 per cent increase in exports. The value of production has increased by 10-15 per cent during the same period. The employment level too has increased by 10 per cent.

The steel industry of Karnataka was expected to have a prosperous half year of April-September 07 with increase in production projected at 20-25 per cent and that of sales and exports 15-20 per cent.

The electronics industry of Karnataka has performed well during October 06-March 07, registering a 20-25 per cent increase in production, 15-20 per cent increase in sales and exports. Though the pricing has remained at same level, the increased sales has helped the industry to increase the profit margin realisation by five per cent.

The employment level in the industry has gone up by 10 per cent.

The industry experts expect the electronics industry to register an excellent performance during April-September 07. The industry expects an increase in production of 20-25 per cent, 15-20 per cent increase in sales and exports respectively.

The industry suggested the Government to effect a significant reduction in the service tax duty.

The Information Technology sector of Karnataka registered a mixed trend during October 06-March 07. The increase in demand of 15-20 per cent had resulted in sales by around 20 per cent, overseas billing by 20-25 per cent and manpower utilization by 10 per cent.

The Karnataka IT sector is expected continue its journey in the positive growth trajectory during April 07 - September 07. According to industry experts, on the back of an expected 15-20 per cent increase in demand, its revenue is expected to increase by 20-25 per cent.

UNI