The Hindu Business Line : Manufacturing sector concerned over performance

New Delhi, Aug. 12 The IIP numbers released on Tuesday have got the manufacturing sector worried. It fears that the GDP growth is likely to be closer to 8 per cent as industrial production suffered heavily in the first quarter of this financial year.

That the manufacturing sector has been witnessing a consistent fall is a matter of “serious concern,” said Mr Sajjan Jindal, Vice-Chairman and Managing Director, JSW Steel and President, Assocham. The consumer durables sector, however, had reason to cheer. Durables manufacturers had followed a growth-oriented strategy, resulting in healthy growth across all leading product categories, said Mr R. Zutshi, Deputy Managing Director, Samsung India.

Mr Moon B. Shin

Moon B. Shin, Managing Director, LG India: “We are very positive about the Indian market and our high-end products are performing quite well. The IIP reconfirms our vision and target, and gives us a positive message. The lifestyle of the Indian consumer is evolving and so are his requirements and necessities. Things considered a luxury yesterday have become a necessity today. With the festive season approaching the sales are bound to increase and so is the spending capacity of the consumer.”

Mr R. Zutshi

Mr R. Zutshi, Deputy Managing Director, Samsung India: “The consumer durables sector has shown healthy growth across all leading product categories primarily linked with the fact that manufacturers like us have followed a growth-oriented strategy. We have been expanding our reach in the smaller cities, have desisted from price hikes or passed on the hike minimally and have tried to sustain excitement in the market place through new product introductions.”

Mr Sajjan Jindal

Mr Sajjan Jindal, Vice-Chairman and Managing Director, Jindal South West (JSW) Steel, and President, Assocham: “The manufacturing sector has been witnessing a consistent fall, for June 2008 has slipped to 5.4 per cent from 8.9 per cent a year ago, which is now a matter of serious concern. Even if industry is accorded the best possible packages in terms of incentives and concessions, the GDP growth is unlikely to be close to 9 per cent . We would be lucky if India achieves a GDP growth of 8 per cent as in first quarter of the current fiscal, industrial production has suffered heavily. The only satisfaction one can draw is that consumer durable growth has gathered momentum. With good monsoon, there is a hope that the agriculture production will increase and to some extent, compensate for the industrial losses.”.

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