The Hindu Business Line : Marginal decline in sectors showing negative growth: CII

Scorecard
Soya oil, asbestos cement, industrial valves, abrasives with electrical fans were all in the high growth category.
Of the 29 sectors reporting sales, four recorded excellent growth, 13 reported high growth, five registered moderate growth and seven registered negative growth.

Our Bureau

New Delhi, Feb. 5 Out of a total of 100 sectors reporting production, 15 sectors reported a growth rate of over 20 per cent and 30 sectors recorded a growth rate of 10-20 per cent, reported the Confederation of Indian Industry (CII) Ascon survey for April-December 2007 compared to April-December 2006.

The survey, which tracks the performance of various manufacturing sectors of industry, revealed that although the sectors showing excellent growth had declined compared to the last quarter, the number of sectors showing high growth have moderately increased for the same period.

Forty one sectors recorded a moderate growth rate of less than 10 per cent and 14 sectors recorded a negative growth rate. The percentage remained the same for the moderate category and percentage of sectors in negative category showed slight decline for April-December 2007.

Interest rate issue

While releasing the survey, Mr Satish Kaura, Chairman, CII Industry Council, said, “It is heartening to see the slight decline in the sectors showing negative growth and modest increase high growth sectors, but we still need to be cautious and work with the Government to accelerate the growth rate of manufacturing.”

Mr Kaura suggested an urgent need to address the issue of high interest rates, reduced credit availability and rupee appreciation, which have been responsible for a slow down.

He pointed out that the automobile industry including motorcycles and three-wheelers, continued to remain in the negative sales growth category with regard to the previous quarter.

High growth category

The excellent growth category included electricals such as circuit breakers, power transformers, transmission line towers and power cables along with rubbers hoses. Soya oil, asbestos cement, industrial valves, abrasives with electrical fans were all in the high growth category.

According to the survey, cement, motor stamping, energy metre, capacitors, auto components, ball and roller bearing, polymer, edible oil and textile machinery have shown moderate growth while fertiliser, switchgears, and motor cycles were in the negative growth category.

Further, of the 29 sectors reporting sales, four recorded excellent growth, 13 reported high growth, five registered moderate growth and seven registered negative growth.

According to the survey, three out of the 26 sectors reporting exports were in excellent growth category, while eight sectors showed high growth, five were in the moderate growth category whereas 10 recorded a fall in exports.

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