India's manufacturing firms bullish on growth prospects

Monday, 15 December 2003, 20:30 IST
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NEW DELHI: Indian manufacturing sector is upbeat on growth prospects, with the July-September quarter recording a continuation of the bullish trend witnessed in the first quarter of the current fiscal, said a survey Sunday. According to the Confederation of Indian Industry (CII)-Ascon survey, the manufacturing sector is upbeat, and the trend, which began last year, is expected to gain ground, leading to an increase in overall production, sales and exports. The survey, based on feedback from CII member companies and 96 manufacturing associations, indicates "continued bullish growth in the manufacturing sector, as seen during the first quarter of the current year". The Indian economy is projected to achieve a growth rate of seven percent in the current fiscal year, up from 4.3 percent logged in 2002-03, on the back of sharply higher farm sector output and an increase in industrial productivity. The survey, conducted for the April-September quarterly period, says a large number of sectors posted excellent and high growth compared to the same period in the previous year. "The bullish trend is basically due to the revival in the economy and a pick-up in overall demand in many sectors, which were registering moderate and negative growth," said the report. Out of a total of 133 sectors, the report indicated as against nine earlier 16 sectors have recorded an excellent growth rate of more than 20 percent. In the high-growth segment the numbers had fallen from 42 to 35, while those that recorded moderate growth of 0-10 percent had increased from 55 to 59. Encouragingly, 23 sectors registered negative growth as compared to 28 in the earlier survey, indicating sustained revival in the economy. In the July-September quarter of the fiscal year 2002-03, out of 131 sectors, 17 recorded excellent growth, 29 high growth, 59 registered moderate growth and 26 sectors showed negative growth. "The production trends confirm a continuity of growth in the manufacturing sector seen in the last financial year and in the first quarter of the current financial year," the survey report said. The overall picture for exports in the July-September was also rosy compared to the previous quarter. The survey revealed that exports are higher in many sectors and have improved over the last three quarters. Cars, three-wheelers, motor cycles, auto components, cement, ball and roller bearings, fluid power components, polyester staple fibre, polyester filament yarn were among products that recorded excellent export growth in the July-September quarter of the current financial year. Despite the optimism, the survey report expresses concerns about market demand in many sectors as also on the issue of dumping and its adverse impact on many sectors, such as bearings. The survey said there was a need for special package to boost growth in power intensive export-oriented industry.
Source: IANS
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