The Hindu Business Line : Manufacturing to gain momentum: CII

THE Indian manufacturing sector is expected to "gain momentum" this financial year, having witnessed an "impressive growth" for the quarter ended June 2004 over the previous corresponding quarter.

As per the ASCON survey, carried out by the Associations Council of the Confederation of Indian Industry (CII), of the total 131 sectors reporting production, 36 logged an over 20 per cent growth rate, 41 recorded a 10-20 per cent growth rate, another 41 registered a growth rate of 0-10 per cent while around 13 sectors reported negative growth.

Those sectors that grew at over 20 per cent included auto components, colour picture tubes, industrial valves, cars, utility vehicles, three-wheelers, ball & roller bearings, electrical fans, tractors, sugar machinery, switch gears and edible oils. Sectors that witnessed 10-20 per cent growth were aluminium, sponge iron, castings, diesel, industrial gases, electronic components, transmission line towers, drugs and pharmaceuticals, according to the survey.

Moreover, of the 70 sectors reporting sales, 20, including auto components, cars and utility vehicles, registered over 20 per cent growth whereas 26 sectors, including sponge iron and plastics, posted 10-20 per cent growth and 19 reported 0-10 per cent growth. Five sectors, including cast iron spun pipe, pig iron and cold rolled steel, recorded negative growth.

Other sectors registering over 20 per cent sales growth included ball and roller bearings, industrial valves, air-conditioners and tractors, as per the survey. Those in the 10-20 per cent growth rate bracket included castings, motorcycles and pulp & paper.

During the corresponding period last year, of a total 77 sectors that reported sales, six sectors had recorded over 20 per cent growth, 23 had a 10-20 per cent growth rate and 34 recorded 0-10 per cent growth rates while 14 sectors registered negative growth.

In terms of exports, of 55 sectors, 18 registered over 20 per cent growth rates, followed by 16 growing at 10-20 per cent pace. While 10 sectors recorded 0-10 per cent growth, 11 registered a fall in exports, added the CII statement.

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