The Hindu Business Line : Manufacturing sector bullish: CII survey

THE domestic manufacturing sector is continuing with its bullish trend owing to the strong fundamentals of the economy and a pick-up in overall demand in many sectors that had earlier registered moderate-to-negative growth.

This has been indicated in the latest survey of the Associations Council (Ascon) of the Confederation of Indian Industry (CII). 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, the survey shows.

Of the 129 sectors reporting production, 26 sectors recorded an excellent growth rate of more than 20 per cent, while 35 sectors recorded a high growth rate of 10-20 per cent. Similarly, 49 sectors registered moderate growth rate of 0-10 per cent while 19 sectors reported negative growth.

During the corresponding period in the previous year, of the 134 sectors surveyed, only 15 sectors had recorded excellent growth, 34 sectors recorded high growth and 68 sectors reported moderate growth. The survey shows that last year 17 sectors had registered negative growth.

According to the survey, auto components, colour picture tubes, industrial valves, medium and heavy commercial vehicles, light commercial vehicles, cars, utility vehicles and three-wheelers were some of the sectors that were in the excellent growth category. Aluminium, cold rolled steel strips, sponge iron, ball and roller bearings, castings, electric motors, oil and gas equipment, electronic components were all in the high growth category.

Further, the survey shows that of the 62 sectors reporting sales compared to 76 last year, 13 sectors registered excellent growth, 19 sectors registered high growth, 22 sectors reported moderate growth while eight sectors recorded low or negative growth. During the corresponding period last year, seven sectors reported excellent sales growth, 20 recorded high growth rate, 43 recorded moderate growth rate, while six sectors had registered negative growth.

The survey reveals that auto components, electronic components, industrial valves, fluid power, electric fans, cars, utility vehicles were some of the sectors in the excellent category. Those in the high growth category include lead and lead alloy, sponge iron, plastics, castings, refractories, textile machinery, tractors, motorcycles and air conditioners. Cast iron spun pipe, cold rolled steel, sugar machinery recorded negative sales growth.

The latest survey covers 47 sectors compared to 57 last year, of which 21 sectors have shown excellent growth as compared to 22 last year, defined as more than 20 per cent increase in exports.

Besides, there are 11 sectors in the high growth category, which is defined as an increase in exports between 10 per cent and 20 per cent, while nine sectors recorded moderate growth, defined as 0-10 per cent growth. In the low growth category, which is defined as an increase in exports of less than 10 per cent, only six sectors registered fall in exports.

Aluminium, cement, cold rolled steel, fertiliser, machine tools, cars, utility vehicles, are some which have done well in the exports front, registering excellent growth. Those in the high growth category include soda ash, plastics, ball and roller bearings, electronic components, automotive tyre, consumer electronics, while caustic soda, ceramics and black & white television reported negative exports.

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