Indian manufacturing continuing bullish trend

Monday, 07 June 2004, 19:30 IST
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NEW DELHI: India's manufacturing sector is continuing with its bullish trend leading to an increase in overall production, sales and exports, a new industry survey states. "The manufacturing sector is upbeat and the trend, which started last year, is expected to gain ground, leading to an increase in overall production, sales and exports," states the latest survey report of the Associations Council of the Confederation of Indian Industry (CII-ASCON). "The bullish trend is due to strong fundamentals of Indian economy and a pick-up in overall demand in many sectors, which were earlier registering moderate and negative growth," pointed out the survey report released Sunday. The survey revealed that out of 129 sectors reporting production, 26 recorded an excellent growth rate of more than 20 percent, 35 a high growth rate of 10-20 percent, 49 a moderate growth rate of 0-10 percent and 19 sectors registered negative growth. During the corresponding period last year, out of the 134 sectors surveyed, only 15 had recorded excellent growth, 34 a high growth, 68 a moderate growth and 17 sectors had registered negative growth. The survey said that auto components, electronic components, industrial valves, fluid power, electric fans, cars, utility vehicles were experiencing excellent growth while lead and lead alloy, sponge iron, plastics, castings, refractories, textile machinery, tractors, motor cycles and air conditioners were in the high-growth category. Cast iron spun pipe, cold rolled steel and sugar machinery were among those that recorded negative sales growth. "The Indian manufacturing is not only charting a success story in the domestic front, but is also doing well globally, conquering many markets," states the report. Out of 47 sectors covered this year, 21 have shown excellent growth as compared to 22 last year, defined as more than 20 percent increase in exports. The CII-ASCON survey has thrown up some factors that could prevent a still higher growth in output. "The key is to have company-specific initiatives to improve productivity. Rising costs of inputs, thanks to higher import duties or higher raw material prices have also affected profitability," the report stated. Besides, there are specific issues like an inverted customs duty structure on some products, and low investment in major infrastructure projects, which are affecting the Indian industry.
Source: IANS