Growth of India’s manufacturing sector is expected to further moderate during October-December over the same period last year on account of high input cost and uncertainties in the global economy, a survey has said.
The sector’s growth was moderate in April-September quarter compared to the corresponding period of the previous year.
“High input and capital costs and uncertainties in the global economy are the major factors constraining growth of the manufacturing sector,” CII-ASCON survey said on Sunday.
Out of the 85 sectors covered in the survey for October-December period, the percentage of segments reporting excellent growth of more than 20 per cent is expected to decline to 7 per cent, it said.
Further, slowdown is also expected in large number of sectors falling in the moderate category of growth between 0-10 per cent.
“Most of the sectors (55.2 per cent) are expected to grow at a moderate rate during October-December,” it said, adding the number of sectors recording excellent and high growth was expected to decline to moderate growth category.
It also highlighted some of the issues faced by the industry, including rise in the cost of raw materials, high cost of credit, infrastructure bottlenecks and land acquisition issue.
“These issues need to be addressed at the earliest to help the industry overcome the ongoing decelerating growth phase,” it said.