Electronic, steel, IT industry show buoyant performance in K'taka

Bangalore, May 1 (UNI) Registering an impressive 20-25 per cent growth in production, 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 bi-annual Industry Monitor Survey forecast a robust 25 per cent growth in production for the industries in the State 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 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 had recorded buoyant performance during October 06-March 07, indicated by 20-25 per cent increase in production and 15-20 per cent increase in both sales and exports.

The value of production had increased by 10-15 per cent during the same period. The employment level too had increased by ten per cent.

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

The electronics industry of Karnataka had performed well during October 06-March 07, registering a 20-25 per cent increase in production, 15-20 per cent increase in both sales and exports.

Though the pricing had remained the same, the increased sales had helped the industry increase the profit margin realisation by five per cent. The employment level in the industry had gone up by ten per cent.

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

The industry suggested that the Government effect a significant reduction in 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 utilisation by ten per cent.

The Karnataka IT sector was expected to continue its journey in the positive growth trajectory during April 07-September 07.

According to industry experts, its revenue was expected to increase by 20-25 per cent on the back of an expected 15-20 per cent growth in demand.

UNI