Industrial growth stronger in H1

The updated Confederation of Indian Industry-ASCON survey for the April-September period indicates continued bullish growth in the manufacturing sector.

The survey reveals a significant rise in the number of sectors showing a high growth compared with the previous survey.

The survey attributes the bullish trend to a revival in the economy and pick-up in overall demand in many sectors that had been registering moderate or negative growth.

Out of the 133 sectors, against the 134 covered by the last survey, 16 sectors recorded an excellent growth rate of more than 20 per cent as compared with 9 sectors in the last survey.

While 35 sectors recorded a high growth rate of 10 to 20 per cent against 42 sectors, 59 sectors registered a moderate growth of 0-10 per cent against 55 sectors, in the previous survey.

"Encouragingly, the number of sectors registering negative growth has come down to 23 from 28 in the last survey, indicating sustained revival in the economy," the CII release said.

The position during April-September 2002-03 was: 17 sectors recorded excellent growth, 29 sectors recorded high growth, 59 registered moderate growth and 26 sectors showed negative growth. This was out of the 131 sectors covered.

According to the CII-ASCON survey, the production trends confirm a continuity of growth in the manufacturing sector seen in the last year and in the first quarter of the current financial year.

"Although there has been a decline in the number of sectors that showed excellent growth, compared with the corresponding period in the last year, there has been an increase in the number of sectors achieving high growth," the release added.

There has also been a decline in the number of sectors registering negative growth compared with the previous corresponding period, confirming a revival in many sectors.

Machine tools, commercial vehicles, utility vehicles, cars, three-wheelers, aluminium and fluid power components are in the excellent growth sector, while electronic components, ball & roller bearings, paints, sponge iron and soda-ash are in the high growth sectors.

Forgings, beer and biscuit industry have achieved high growth of 10-20 per cent from moderate growth. Aluminium, utility vehicles, carbon dioxide gas and cars have achieved excellent growth from high and moderate growth achieved in the last quarter.

The survey also indicates that the overall picture of exports as compared with the previous quarter is rosy. The survey reveals that exports are higher in many sectors and have improved position over the last three quarters.

The CII-ASCON Survey is based on feedback received from members companies and 96 manufacturing associations.

Sectoral growth

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• Of the 133 sectors, 16 sectors have recorded an excellent growth rate of more than 20 per cent as compared with 9 sectors of 134 sectors covered in the last survey
• 35 sectors have recorded a high growth rate of 10 to 20 per cent against 42 sectors in the last survey
• 59 sectors have registered a moderate growth of 0-10 per cent against 55 sectors in the last survey