CII survey shows balanced growth in manufacturing

Dismissing earlier worries of inconsistent growth, the country's manufacturing sector has reported balanced growth across all segments in the first quarter of the current financial year according to the Ascon (association councils) survey carried out by the Confederation of Indian Industry (CII).

Out of the 140 sectors reporting production, 34 sectors recorded an excellent growth rate of more than 20 per cent. 56 sectors recorded a high growth rate of 10-20 per cent and 36 sectors registered a moderate growth rate of 0-10 per cent, while 14 sectors reported negative growth.

A larger number of sectors were in the high growth category, shifting from moderate growth in this period, as compared to the last quarter results.

Lead and lead alloy, sponge iron, switchgears, motor starters, circuit breakers, fluid power, boilers, power transformers, textile machinery, transmission line towers, metallurgical equipment, medium and heavy commercial vehicles, light commercial vehicles, cars, microwave ovens, DVD players, beer, mustard oil, cellular services and housing finance were in the excellent growth category.

Paints, polymers, plastics, industrial valves, precision tubes, industrial gases, water equipment and drugs and pharmaceuticals were all in the high growth category.

Of the 78 sectors reporting sales, 26 sectors registered excellent growth, 28 sectors registered high growth, and 18 reported moderate growth while 6 recorded low or negative growth. Nitrogen fertilizers, soda ash, sponge iron, ball and roller bearing, castings, fluid power, boilers, transmission line towers, vehicle industry, beer, housing finance and personal computer were some of the sectors in the excellent growth category.

Those in the high growth category include diesel, paints, pig iron, plastics, ceramics, tractors, three wheelers, drugs and pharmaceuticals and computer hardware. Caustic soda, nylon filament yarn, earthmoving and mining equipment, scooters, and newsprint recorded negative sales growth.

The study also showed that the country's manufacturing industry showed a dip in exports as compared to the results in the last quarter, while indicating that 16 sectors have also shown excellent growth in exports. There were 10 sectors in the high growth category and 11 sectors in the moderate growth category, while four sectors registered a fall in exports.

Cement, abrasives, auto components, ball and roller bearing castings, fluid power, cars, flat glass and motor cycles are sectors which have done well on the export front, registering excellent growth.

Those in the high growth category include forgings, industrial valves, earthmoving and mining equipment, drugs and pharmaceuticals. Soda ash, scooters, mopeds and electrical fans reported negative growth in exports.