AUTO & ELECTRICALS REGISTER MORE THAN 20% GROWTH

New Delhi : The ASCON survey carried out by the Associations Council of the Confederation of Indian Industry (CII), for April 2006 - March 2007 over April 2005 –March 2006 indicates that the Indian manufacturing sector has maintained the growth momentum built up over the last 12 months.

  According to the CII-ASCON survey, Sponge Iron, Switchgears, Power Cables, Circuit breakers, Electrical Cable & Wires, Auto Components, Castings, Argon, Nitrogen, Machine Tools, Textile Machinery, Welding Equipment, medium and Heavy Commercial Vehicles, LCVs, Scooters, All 3 Wheelers, Electric Fans, Microwave Ovens, were in the excellent growth category. Cement, Diesel, LLDPE, LPG, Paints, Plastics, Ball & Roller Bearings, Earth Moving & Construction Equipment and Monobloc Pumps were all in the high growth category.

While releasing the CII ASCON Survey for the period April 06 to Mar 07, Mr Satish Kaura, Chairman, CII Industry Council, said “we now have the results of the entire financial year before us. It is heartening that over 20% of the manufacturing sectors have remained in the Excellent growth category for two years and a large number of sectors have moved to the High growth category during this year from the moderate growth category.” 

A comparison with the results released last quarter, shows some correction in the growth rate with percentage of sectors in the Excellent Growth category remaining constant and a movement of some sectors from High Growth to Moderate Growth rate, added Dr. Sarita Nagpal Head Manufacturing Services, CII.  

According to the CII-ASCON survey, out of the 36 sectors reporting sales, 9 sectors registered excellent growth, 15 sectors registered high growth, and 12 sectors reported moderate growth while none of the sectors recorded low or negative growth. 

“The survey reveals that Forgings, Machine Tools, Textile Machinery, Tractors, Electric Fans, LCVs, Medium & Heavy Commercial Vehicles and Microwave ovens were some of the sectors in the excellent sales growth category. Those in the high growth category include Cement, Ball & Roller Bearing, Ceramics, Industrial Valves, Earthmoving & Construction Equipment, Water Equipment etc.” said Mr. Kaura. 

According to the CII-ASCON survey, the Indian manufacturing industry is showing a dip in the exports as compared to the results in the last quarter.  The latest survey indicates that 9 sectors have shown excellent growth in exports. There were 8 sectors in the high growth category, 6 sectors recorded moderate growth, while 6 sectors registered a fall in exports.

Auto Components, Sponge Iron, Forgings, Machine Tools, All Three Wheelers, Medium and Heavy Commercial Vehicles and Motor Cycles are sectors that have done well on the export front, registering excellent growth. Those in the high growth category include Ball & Roller Bearings, Cement, Ceramics, Industrial Valves, Refractory and Earth Moving & Construction Equipment.
 
 Out of the total of 98 sectors reporting production, 21 sectors recorded an excellent growth rate of more than 20 percent 36 sectors recorded a high growth rate of 10-20 percent, 30 sectors registered moderate growth rate of 0-10 percent while 11 sectors reported negative growth. The percentage of sectors in each category remained almost constant over the 9 months period April to Dec 2006 as well as over the last year i.e. April 05 to Mar 06.