Manufacturing
sector shows continued growth: survey
Posted AtIndiainfoline.com
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 |
