The Index of Industrial Production (IIP) may show the consumer durables industry to be slowing, but the industry continues to be upbeat with most players bullish about maintaining 15-20 per cent growth. The overall industrial growth rate plummeted to 2.7 per cent during November 2010.

According to IIP numbers, consumer goods production declined by 3.1 per cent in November 2010 in contrast to a spurt of 10.1 per cent in November 2009. So, why this anomaly between what the IIP figures show and what the industry says? A slew of industry players and observers Business Line spoke to confirmed that the IIP data do not reflect the correct industry picture, as they include outdated products such as VCRs, typewriters and sewing machines. Also IIP does not take into account products such as set-top boxes, CCTVs and DVDs which are more recent and in use.

According to Consumer Electronics Manufacturers Association (CEAMA), the durables industry has grown by 12-13 per cent in 2010 compared to the previous year. The sales of display products such as flat panel displays — LCDs and PDPs — rose phenomenally, by 45 per cent this year, while the sales of air-conditioners and home appliances surged nearly 12 per cent and 23 per cent respectively.

“There is no indication to suggest that the durables industry is showing a sluggish growth as most companies are ramping up their production to meet customer demand,” a CEAMA spokesperson said.

According to Mr Ravinder Zutshi, Deputy Managing Director, Samsung India, “We are seeing consistent growth of 14 per cent and are not witnessing any slowdown. Quite the contrary: we are gearing up to meet market demands with innovative products and designs.”

A Barclays Capital research note said the decline in consumer durables output in November could be on the back of a reduction in festival-related buying, smaller number of working days and ongoing tightening of interest rates.

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