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      Manufacturing sector shows continued growth: survey


      The ASCON survey carried out by the Associations Council of the Confederation of Indian Industry (CII), for April-September 2005 over April-September 2004 reflects that the Indian manufacturing sector continued to report excellent growth.

      Out of the total of 140 sectors reporting production, 27 sectors recorded an excellent growth rate of more than 20 percent. 43 sectors recorded a high growth rate of 10-20%, 50 sectors registered moderate growth rate of 0-10% while 20 sectors reported negative growth.

      According to the CII-ASCON survey, Cast Iron, Pig Iron, Sponge Iron, Switchgears, Motor Stampings, Ball & Roller Bearings, Castings, Fluid Power, Electric Motors, Machine Tools, LCV's Split Air Conditioners, Microwave ovens, Drugs and pharmaceuticals and Cellular Services were in the excellent growth category.

      Asbestos Cement, Paints, Capacitors, Auto Components, Precision tubes, Industrial gases, Sugar Machinery, Transmission Line Towers, Motor Cycles, Alcoholic beverage were all in the high growth category. A larger number of sectors were in the high growth category compared to the first quarter of this year.

      According to the CII-ASCON survey, out of the 77 sectors reporting sales 21 sectors registered excellent growth, 27 sectors registered high growth, and 23 sectors reported moderate growth while 6 sectors recorded low or negative growth.

      The survey reveals that Cast Iron, Pig Iron, Sponge Iron, Lead and Lead alloy, Aluminium Extrusions, Castings, Machine Tools Air & Gas Compressor, Industrial Furnace, Air conditioners, Microwave ovens and Cellular Services were some of the sectors in the excellent growth category. Those in the high growth category include, Asbestos Cement, Ball & Roller Bearings, Abrasives, Pumps, Sugar Machinery, Transmission Line Towers, and Drugs and Pharmaceuticals. M&HCVs, Scooters, Pulp and Paper, Tea, and Nylon Filament Yarn recorded negative sales growth.

      According to the CII-ASCON survey, the Indian manufacturing industry is facing a slow down on the export front due to high domestic demand. The latest survey indicates that 14 sectors have shown excellent growth in exports. There were 19 sectors in the high growth category, 7 sectors recorded moderate growth, while 13 sectors registered a fall in exports.

      Industrial Furnace, Ball and Roller Bearings, Fluid Power Components, Vehicle industry, and Automotive Tyre are some, which have done well on the export front, registering excellent growth. Those in the high growth category include Abrasives, Auto Components, Precision Tubes and Sugar Machinery while Cement, Cold rolled steel, Electrical Fans, Tea and Beer reported negative growth in exports.

      Compared to this in the corresponding period last year, 18 sectors recorded excellent export growth, 18 recorded high growth rate, and 6 recorded moderate growth rates while 14 sectors had registered negative growth.

      The survey also brings out that there are a number of specific issues like unequal VAT rates in different states, low abatement rate on RSP, high input prices, lengthy procedures for obtaining export benefits, and unrestricted second hand goods import which are restricting to some extent, the potential growth in the Indian manufacturing industry.

      December 14, 2005


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