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MACHINIST - Indian Manufacturing readjusting growth momentum in difficult times

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Indian Manufacturing readjusting growth momentum in difficult times
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Written by Vijay   
Monday, 12 May 2008

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CII Manufacturing Council to work on 10 point agenda to take manufacturing to next level

New Delhi: The CII ASCON for April 2007- March 2008 over April 2006 – March 2007 was released here today. The survey carried by Confederation of Indian Industry (CII) that tracks 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 percent. 39 sectors recorded a moderate growth rate of less than 10 percent 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.

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.

According to the CII-ASCON survey, out of the 31 sectors reporting sales 4 sector recorded excellent growth, 14 sectors reported high growth, 6 sectors registered moderate growth and 7 sectors registered negative growth.

Sponge iron, water equipment and MPVs from auto sectors reported excellent growth while industrial valves, ceramics, electric fans reported high growth. Cement, cold rolled steel and textile machinery were in moderate growth category.

According to the CII-ASCON latest survey, 6 sectors out of 26 sectors reporting exports were in excellent growth category while 5 sectors have shown high growth. 6 sectors were in the moderate growth category.

Dr. Sarita Nagpal, Deputy Director General, CII said that comparison of survey results with last year and that with last quarter 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. She said CII’s Manufacturing council would work with government and other stakeholders on recently released CII’s 10 point agenda for manufacturing with an aim to increase the share of Manufacturing to 25% of country’s GDP and taking manufacturing to next level of growth.

 
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