Business Daily from THE HINDU group of publications
Tuesday, Dec 05, 2006
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Business Daily from THE HINDU group of publications Tuesday, Dec 05, 2006 ePaper |
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Industry & Economy
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Economy States - Andhra Pradesh Manufacturing drives AP economy in 1st half Our Bureau
The CII survey says that manufacturing sector could expect a big boom in the next two years.
Hyderabad , Dec. 4 IT, manufacturing, textiles and pharma sectors continue to drive the growth of the Andhra Pradesh economy. The half-yearly economic survey conducted by the CII has found that the manufacturing sector increased production by 13-15 per cent. While projecting better growth rates for the second half, the study said that these sectors were facing challenges such as power cuts, lack of skilled human resources, rising costs of raw materials and lack of access to finance. Sales in manufacturing sector went by 15-20 per cent over October 2005-March 2006. "During the first half of this fiscal, capacity utilisation has remained the same (over 90 per cent) but due to strong demand, prices went up by 10 per cent. The profit margins increased by 5-7 per cent," a CII release said. However, it did not provide absolute numbers. On the outlook for the next half, the survey said that the sector would expect a big boom in the next two years. "Encouraging demand for manufacturing products would drive production and exports. The second half could see a growth of 15-20 per cent in value of production and 10-15 per cent in production." The IT industry, which had been witnessing impressive growth rates over the years, enhanced revenue by 25-30 per cent. Overseas billing went up by 50-60 per cent. In the next half, the sector could see a good growth rate as demand for IT products and services were expected to grow at 30-40 per cent. The textile industry, which registered 16-18 per cent increase in production, was concerned over frequent power cuts, lack of skilled labour and raw material shortage. The industry leaders suggested that the excise duty on cotton and polyester be removed. The pharmaceutical industry, which had been witnessing tremendous pressure on the pricing front, was not happy with increasing prices of raw materials that have been adding up to the total cost of production. The industry wanted reduction of import and Customs duties.
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