The performance of industry moderated during the first quarter (April-June) of the current financial year, showed a CII-Ascon survey.
Out of the 135 sectors covered by the survey, the share of sectors reporting ‘excellent’ growth has declined to 20.7 per cent from 27.3 per cent a year ago, while an increasing number of sectors — or 42 per cent — reported moderate growth of up to 10 per cent during the quarter.
“High inflation, rising input cost and monetary tightening measures adopted by the Reserve Bank of India are some of the reasons behind moderating growth in April-June 2011,” said CII Director General Chandrajit Banerjee.
An analysis of the data according to broad categories shows that consumer durables had the largest per centage of sectors in the excellent growth category followed by capital goods. On the other hand, consumer non-durables and basic goods performed poorly with a larger share of sectors in the high, moderate or negative growth segments.
Some of the sectors reporting excellent growth rates — over 20 per cent — are machine tools, forgings, switchgears, tractors, LCVs, passenger cars, earth-moving and construction equipment. Cement, motors starters, natural gas, sunflower oil, and colour picture tube of TVs are some sectors that have shown negative growth rates.
The survey also highlighted some of the general and sector-specific issues faced by the industry. The general issues include rise in the cost of raw materials, high cost of credit and infrastructure bottlenecks.
