The Hindu Business Line : CII survey finds healthy growth in manufacturing

THE Indian manufacturing sector reported healthy growth during April-June 2005 compared to the corresponding period in 2004, said a survey carried out by the Associations Council of the Confederation of Indian Industry (CII).

Out of the 135 sectors reporting production, 29 sectors recorded a growth rate of more than 20 per cent and 39 sectors recorded a growth rate of 10-20 per cent. While 47 sectors registered a growth rate of 0-10 per cent, 20 sectors reported negative growth, according to the survey.

During the first quarter last year, 36 sectors recorded a growth rate of more than 20 per cent, 41 sectors recorded growth of 10-20 per cent, another 41 recorded 0-10 per cent growth and 13 sectors registered negative growth. It was, however, on a lower base.

According to the survey, cast iron, petrol, switchgears, circuit breakers, fluid power, industrial gas, boilers, earthmoving and construction, machine tools, textile machinery, transmission line towers, rubber footwear, housing finance, hotels/tourism and cellular services recorded more than a 20 per cent growth rate.

Sponge iron, paints, capacitors, abrasives, forgings, industrial valves, pumps, newsprint and light commercial vehicles posted a growth rate of 10-20 per cent.

However, there are a number of specific issues, which are restricting the potential growth in manufacturing. These include high input prices, lengthy procedures for obtaining export benefits, capacity under-utilisation and the unrestricted import of second-hand goods.

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