India's manufacturing sector doing better than expected: survey

Tuesday, 21 January 2003, 20:30 IST
Printer Print Email Email
NEW DELHI: India's manufacturing sector is doing better than expected with 21 sectors beating the trends to show higher growth than projected, an industry survey has revealed. "A total of 21 sectors have actually done better than in the first nine months of 2002-03 fiscal than what was anticipated in December," the latest ASCON Industry Monitor prepared by the Confederation of Indian Industry (CII) revealed. In an update on the industry report released last month, CII said data for 21 sectors indicated performance better than expected while there had been a drop in the case of 11. "The updated ASCON Monitor shows that almost double the number of sectors have higher growth than estimated compared to those sectors, which have had lower growth than expected," the CII report released here Monday stated. Industry expects the economy to grow only between 5.0-5.5 percent this fiscal due to a flat growth in agriculture following widespread drought and despite higher growth in manufacturing and exports. Five sectors including three wheelers, nylon tire yarn, electrical fans, scooters and cars have witnessed a higher production than target, while in nine sectors there has been higher than anticipated sales. Ranging from tea, cement, cold rolled steel strips, construction industry, refrigerators, malted foods, diesel, and processed food, the sales have brought cheer to the manufacturing sectors. In the case of eight sectors, exports have witnessed higher growth than anticipated including aluminium to textile machinery, cars, motorcycles, mopeds, steel, polyester filament yarn and tea. Cigarettes, liquefied petroleum gas (LPG), power transformers, motor starters, and motor stampings were among six sectors that witnessed poor production growth during April-December, while sales of polyester filament yarn, textile machinery and transmission line towers slipped down. Both light commercial vehicles and medium and heavy commercial vehicles witnessed far worse exports than expected.
Source: IANS
siliconindia