Manufacturing industry performance dips in Apr-Sept ‘07

Manufacturing industry performance dips in Apr-Sept ‘07

New Delhi: Confederation of Indian Industry (CII) industry survey for April 2007- September 2007 over April 2006 – September 2006, which tracks the performance of various industry sectors showed a dip in the performance as compared to the last quarter. More sectors have recorded a low growth of below 10%.

Out of a total of 91 sectors reporting production 15 sectors reported excellent growth rate of more than 20% and 22 sectors recorded high growth rate of 10-20%. 37 sectors recorded a moderate growth rate of less than 10% and 17 sectors recorded negative growth rate.

The percentage of sectors in excellent and high category also has declined while the percentage 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% 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. The survey revealed that the Automobile industry including motorcycles and three wheelers, are amongst the sectors that figure in the negative sales growth category.

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

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 and edible oil are also in the negative growth category.

26 sectors reporting sales showed that four sectors recorded excellent growth, while nine reported high growth, seven registered moderate growth and six sectors registered negative growth.

Five sectors have shown excellent growth in exports while five were in the high growth category, eight recorded moderate growth and five 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.

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.