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CII M-ASCON Survey indicates Marginal signs of recovery for Manufacturing
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Written by Anand   
Tuesday, 12 May 2009

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New Delhi : Indian Manufacturing sector shows marginal signs of recovery with a few sectors moving from negative growth to moderate growth and a few other moving from moderate to positive growth compared to the previous quarters of 2008-09, said CII in a press release issued hear based on the CII’s mAscon survey for the period April 2008 – March 2009 over April 2007- March 2008.

The sectors that moved from negative growth group to moderate growth group between the third and fourth quarter of 2008-09 are Fertilisers, LDPE, HDPE, Pig Iron, Steel and Mopeds.

High growth in production was reported by 18.75% of the 80 sectors for April – Mar 2009. The percentage of sectors reporting  high growth declined in last two quarters from 40% to 26.73% to 15.63% as enumerated in the table below. However, the year to year comparison reveals that manufacturing sector has significantly slowed down during 2008-09 when compared to 2007-08.

‘While on a yearly basis the manufacturing sector has slowed down, there are some green shoots from a few sectors that have demonstrated a marginal pickup during the second half of 2008-09 when compared to the first half. These demonstrate a cautious optimism on signs of recovery, said Mr Chandrajit Banerjee, Director General CII

Sectors reporting high growth are asbestos cement, switch gears, power cables, capacitors, industrial gases like argon, carbon dioxide and hydrogen.

While the sectors reporting negative growth are edible oils, bus & truck tyres, M&HCVs, LCVs, MPVs, Capital goods like textile machinery, distribution transformer, industrial valves, energy meters and motors starters.

Other sectors such as cement, polymer like HDPE, LDPE, LLDPE, sponge iron, circuit breakers, auto components, electric motors, transmission line towers, vehicle industry including cars, scooters, motor cycles, other consumer durables like colour TV, refrigerators, electric fans and consumer non durables like soya were in moderate growth category.

Sectors reporting excellent growth are industrial gases like nitrogen and oxygen, power transformers, electric two wheelers.

Out of the 32 sectors reporting sales, 17 sectors recorded moderate growth while 12 sectors were in negative growth category. Sales growth for Electric two wheelers is 49.8% while for asbestos cement it si 21.9%. Sectors reporting declining sales are ball and roller bearings, industrial valves, tractors, machine tools, textile machinery, three wheelers, M&HCVs and utility vehicles. The sectors such as cement, sponge iron, automotive tyre, cars, electric fans, and vehicle industry indicate a moderate sales growth.

On the export side, 11 out of 22 sectors reported negative growth. Ball and Roller Bearing and vehicle industry including cars and Motorcycless  etc were the sectors in the excellent growth category. Industrial valves, textile machinery and commercial vehicles have reported negative growth.

 
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