Industry registers low growth in India: Survey

New Delhi, Nov.12: Confederation of Indian Industry (CII) industry survey for April 2007- September 2007 over April 2006 – September 2006, which tracks the performance of the various sectors of the industry was released here.

The sectors showing excellent or high growth has reduced compared to last quarter. More sectors have recorded a low growth below 10 percent.

Out of a total of 91 sectors reporting production 15 sectors reported excellent growth rate of more than 20 percent and 22 sectors recorded high growth rate of 10-20 percent. 37 sectors recorded a moderate growth rate of less than 10 percent and 17 sectors recorded negative growth rate., The percentage of sectors in excellent and high category has declined while the percentages increased for moderate and negative category over the period April 2007 to June 2007.

While releasing the CII ASCON Survey for the period April 07 to September 07, Satish Kaura, Chairman, CII Industry Council, said “it is a matter of concern that more than 50 percent of the manufacturing sectors have recorded either moderate or negative growth".

These low growth rates were mainly due to high interest rates prevailing during the period, reduced credit availability and rupee appreciation. Another factor that has emerged over the last six months is the impact of the FTAs signed with some of the countries in the last two years. According to him the survey has revealed that Automobile industry including motorcycles, three wheelers, are amongst the sectors in the negative sales growth category.

Scooters, mopeds, electric fan, sponge iron, circuit breakers, transformer are in the excellent growth category while Asbestos cement, Pig Iron, power cables, Industrial valves, Textile machinery, transmission line towers, air conditioners, microwave ovens were all in the high growth category,

According to the CII-ASCON survey cement, motor stamping, energy meter, ball and roller bearing, polymer, utility vehicles, refrigerators, rubber footwear, bus and truck tyre etc. has shown moderate growth while fertilizer, machine tools, capacitors, Motor cycles, edible oil etc are in the negative growth category.

According to the CII-ASCON survey, out of the 26 sectors reporting sales four sectors recorded excellent growth, nine sectors reported high growth, seven sectors registered moderate growth and six sectors registered negative growth.

According to the CII-ASCON latest survey five sectors have shown excellent growth in exports while five sectors were in the high growth category. eight sectors recorded moderate growth and five sectors registered a fall in exports.

Machine tools, air conditioners, motorcycles are sectors that have done well on the export front, registering excellent growth. High growth category includes Vehicle industry, all three wheelers, industrial valves and cold rolled steel and sectors showing negative growth are cement, ceramics, mopeds and rubber goods.

Dr. Sarita Nagpal, Deputy Director General, CII said that the Survey has thrown up early indicators of what could trigger a slowdown in the Indian manufacturing sector in the future. CII"s Manufacturing council would work towards addressing these issues.

ANI
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