Manufacturing sector seeks triggers to revive growth: CII-Ascon Survey

Manufacturing sector seeks triggers to revive growth: CII-Ascon Survey
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First Published: Mon, Feb 04 2008. 01 41 PM IST
Updated: Mon, Feb 04 2008. 01 41 PM IST
New Delhi: The Ascon survey carried out by the Confederation of Indian Industry (CII) for April 2007- December 2007 over April 2006 – December 2006, tracking performance of various manufacturing sectors of the industry, was released here today.
Although the sectors showing excellent growth have declined compared to the last quarter, the number of sectors showing high growth have moderately increased for the same period.
The Survey has shown some positive signs but still a lot need to be done to put the Indian manufacturing sector on the excellent growth trajectory. CII’s Manufacturing council would work with various stakeholders to facilitate Indian manufacturing sector achieve excellent growth.
Key Findings
* Out of a total of 100 sectors reporting production, 15 reported excellent growth rate of more than 20% and 30 recorded high growth rate of 10-20%.
* 41sectors recorded a moderate growth rate of less than 10% and 14 sectors recorded a negative growth rate
* The percentage remained same for moderate category and percentage of sectors in negative category showed slight decline for the period April 2007 to December 2007.The percentage of sectors in excellent category has declined while percentage of sectors in high growth category has increased.
* There is urgent need to address the issue of high interest rates, reduced credit availability and rupee appreciation, owing to which there has been a slow down in 2006-07
* Automobile industry including motorcycles and three wheelers, continue to remain in the negative sales growth category like the earlier quarter
* Electricals like circuit breakers, power transformers, transmission line towers and power cables are in the excellent growth category along with rubbers hoses and soya oil; asbestos cement, Industrial valves, Abrasives with electrical fans are all in the high growth category
* Cement, motor stamping, energy meter, capacitors, auto components, ball and roller bearing, polymer, edible oil and textile machinery has shown moderate growth while fertilizer, switchgears, and motor cycles are in the negative growth category
* Out of the 29 sectors reporting sales, four sector recorded excellent growth, 13 reported high growth, five registered moderate growth and seven registered negative growth
* Three sectors out of 26 reporting exports were in excellent growth category while eight showed high growth; five were in the moderate growth category and 10 recorded fall in exports
* Motorcycles, utility vehicles and M&HCV’s are sectors that performed well on the export front, registering excellent growth; high growth category includes auto components, ball and roller bearings, machine tools, vehicle industry and industrial valves and sectors showing negative growth are cement, ceramics, textile machinery, mopeds and scooters
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First Published: Mon, Feb 04 2008. 01 41 PM IST