New Delhi: Manufacturing sectors whose growth increased in the second half of the year to 31 March were aided mainly by capital goods and consumer durables, says a survey carried out by the Confederation of Indian Industry, or CII.
Companies that had cut back on capital spending during the economic slowdown revived investments, while a hike in the salaries of government officials boosted consumption, the survey says.
This increased the number of sectors recording “excellent growth”—which the survey defines as growth above 20%—from eight in 2008-09 to 30 in the last fiscal. The number of sectors recording “high growth” (10-20%) rose from 15 to 25, while 29 sectors recorded “moderate growth” (0-10%) compared with 39 previously.
In all, 105 sectors are covered in the survey, which acts as a bellwether for the manufacturing industry. Passenger cars, light commercial vehicles, tractors, phosphate fertilizer and colour TVs recorded excellent growth, while telecom cables, switch gears and polymers declined.
CII says that rising raw material prices, credit shortage, rupee fluctuations and cheap imports from China are areas of concern. “It is critical that this (current growth level) moves to a higher growth trajectory to sustain 9%-plus GDP (gross domestic product) growth,” CII director-general Chandrajit Banerjee said in a press release.