New Delhi: Seventeen manufacturing sectors including fertilisers, machine tools, tractors, three wheelers, motor cycles and electric two wheelers registered negative growth in 2007-08 as high interest rate and rising input costs hit the firms.
According to CII survey report, the number of manufacturing sectors registering negative growth increased and have reached to about 16.35% in 2007-08 against 11.2% in 2006-07.
Out of a total of 104 sectors reporting production, 16 sectors reported excellent growth of more than 20% and 32 sectors recorded high growth of 10-20%, while 39 sectors recorded a moderate growth of less than 10% and 17 sectors recorded negative growth, CII said.
“It is cause of concern when we compare the last year results with the current year results because there is a clear shift of sectors from excellent and high growth category to moderate and negative growth category,” CII Manufacturing Council chairman Surinder Kapur said while releasing the CII ASCON survey for the period 2007-08.
About 30.61% of the sectors like asbestos, cements, cement, ball and roller bearings and vanaspati which have reported moderate growth in 2006-07, increased to 37.5% in 2007-08, CII said.
The percentage remained same for excellent and high growth, but there is slight decline in the moderate category and slight increase in the percentage of sectors in negative category for the period 2007-08.
CII deputy director general Sarita Nagpal said that comparison of survey results reflects that manufacturing industry is trying to stabilise, absorb and adjust its growth to issues of high interest rates, reduced credit availability and rupee appreciation.