Mfg sector seeks triggers for growth fillip

A Confederation of Indian Industry (CII) survey which tracks the performance of the manufacturing sector, today said that the sector is looking for positive triggers to attain excellent growth rate.

The survey done for the nine month period beginning April 2007, as against the same period in 2006, found that although the sectors showing excellent growth has slightly declined, the number of sectors showing high growth has increased in the given period.

"There is an urgent need to address the issue of high interest rates, reduced credit availability and rupee appreciation. This year has seen a slowdown based on this," Satish Kaura, chairman, CII Industry Council, said.

Of the total 100 sectors reporting production, 15 sectors reported excellent growth rate of more than 20%, a slight decline from the last survey done for the six month period beginning April 2006.

Around 30 sectors recorded high growth rate of 10-20%, an increase of 6% from the last survey.

The percentage of sectors in negative category also declined for the same period. However, percentage of ones showing moderate growth remained unchanged from the last survey.

According to the survey automobile industry including motorcycles, three wheelers, continued to remain in the negative sales growth category like the previous survey. Those in the high growth category include asbestos cement, industrial valves, abrasives among others.

"The survey has shown some positive signs but lot needs to be done to put the Indian manufacturing sector on the excellent growth trajectory. CII would work with various stakeholders to facilitate Indian manufacturing sector achieve excellent growth," Sarita Nagpal, deputy director general, CII said.