Manufacturing sectors with moderate growth increase in the economy2 min read . Updated: 12 May 2008, 05:52 PM IST
Manufacturing sectors with moderate growth increase in the economy
New Delhi: The latest CII Ascon survey measuring the performance of the various manufacturing sectors of the industry shows that sectors in the excellent growth and high growth category are more or less same as compared to last quarter, however there is slight decline in the sectors showing moderate growth. Out of a total of 104 sectors reporting production, 16 sectors reported excellent growth rate of more than 20% and 32 sectors recorded high growth rate of 10-20%. 39 sectors recorded a moderate growth rate of less than 10% and 17 sectors recorded negative growth rate. The percentage remained same for excellent and high growth. However there is slight decline in the moderate category and slight increase in the percentage of sectors in negative category for the period April 2007 to March 2008.
Compared to 21.43% of sectors showing excellent growth of above 20% in fiscal 2006-07, 15.38% of showed similar growth in fiscal 2007-08. Sectors showing high growth rates of between 10 and 20% also declined to 30.77% in fiscal 2007-08 compared to 36.73% of such sectors in 2006-07. Sectors showing moderate growth of between 0-10% increased in 2007-08 to 37.5% compared to 30.61% in 2006-07. Sectors showing negative growth also increased slightly to 16.35% from 11.22% in 2006-07.
While releasing the CII ASCON Survey for the period April 07 to March 08, Dr Surinder Kapur, Chairman, CII Manufacturing Council, 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. But comparing latest result with the last quarter, the number of sectors in excellent, high, moderate and negative category is more or less same.
According to Dr Kapur, the survey has revealed that Sponge Iron, power cables, electric motors, power transformers, personal computer, groundnut oil and transmission line towers are in excellent growth category.
According to the survey Industrial valves, circuit breakers, abrasive, colour TV, air conditioners, rubber hoses, soya and industrial gases like hydrogen, carbon dioxide, oxygen including few automobiles like LCVs, cars, scooters, mopeds are in the high growth category. While sectors like asbestos cements, cement, ball & roller bearings and vanaspati were all in the moderate growth category. Fertilizers, machine tools, tractors, vehicle industry including 3 wheelers, motor cycles and electric 2 wheelers reported negative growth.
Click on hyperlink for survey summary