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New Delhi , Sept. 28

THE latest CII-ASCON survey for the April-September period this year reveals sustained growth in the manufacturing sector compared to the same period last year.

The survey reveals continuity in the number of sectors having excellent and high growth vis-a-vis the survey covering the April-June 2003 period.

"This continuity is basically due to the revival in the economy and an unprecedented pick-up in overall demand in many sectors, which were facing negative and moderate growth," the survey said.

Of the 134 sectors reporting production (131 last year), nine sectors have recorded excellent growth of more than 20 per cent, 42 sectors showed high growth of 10-20 per cent and 55 sectors registered moderate growth of 0-10 per cent. Some 28 sectors registered negative growth.

According to the latest survey, of the total of 11 services sectors surveyed, five registered excellent growth, five saw high growth and only one recorded negative growth, again indicating a revival in the sector.

Of the nine sectors that achieved excellent production growth in manufacturing, five are in consumer durables, three in intermediate goods sector and one in the basic goods sector.

The survey revealed that medium and heavy commercial vehicles (M&HCVs), light commercial vehicles (LCVs), cars, utility vehicles, cellular services, housing finance and software (domestic) are those that achieved excellent growth.

It also said that there was an upward trend in overall exports compared to the quarter.

Of the 61 sectors surveyed, 28 achieved excellent export growth, 24 recorded high export growth, four registered moderate growth while five registered negative export growth.

Of the 28 sectors, 10 are from the consumer durables sector, intermediate goods accounted for nine, basic goods comprise six and consumer non-durables account for three sectors.

According to the survey, the manufacturing sector is upbeat and the trend that began last year is expected to gain ground, leading to an increase in overall production, sales and exports.

However, there are certain broad issues that need to be addressed. According to the survey, there are many suppliers and vendors, who in turn look for many partners due to absence of large volume from a single producer.

This reduces product and process innovation, especially among SMEs. The survey revealed that the market for products has shifted to price sensitivity and rewards process improving strategies.

Those unable to compete are delaying investment in technology and in such companies, operations are opportunity-driven rather than strategy-driven resulting in a lack of focus on equipment, technology, labour standards, etc, especially among SMEs.

The survey identified certain sectoral issues that need urgent attention. There are concerns about market demand in many sectors and the issue of dumping and its adverse impact on many sectors, such as bearings, need urgent attention.

It also highlighted the need for a special package for power-intensive export-oriented industry.

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