The survey says the segments like asbestos, cement, ball and roller bearings and vanaspati were all in the moderate growth category.

"It is a cause of concern that there is a clear shift of sectors from excellent and high growth category to moderate and negative growth category," said Surinder Kapur, chairman, CII Manufacturing Council, while releasing the survey Monday.

He, however, said that the results should not cause panic as the latest quarter of 2007-08 showed that the number of sectors recording over 20 percent growth was almost the same as the last quarter of 2006-07.

"The results of the latest survey show that the manufacturing industry is trying to stabilise, absorb and adjust its growth to issues of high interest rates, reduced credit availability and rupee appreciation," said Sarita Nagpal, deputy director general, CII.

Though growing very fast, the manufacturing sector's contribution to India's GDP is only around 17 percent, against 25 to 35 percent in some East Asian economies.