India’s manufacturing sector has shown an improved performance in the first half of 2010-11 (April-September) compared to the corresponding period of the previous year, despite a dip in growth in the second quarter from the first.
A CII-Ascon survey says that the manufacturing sector has seen a diverse performance during the first half of this year. Some sectors have recovered sharply to grow at over 20 per cent, while some others have remained in the moderate growth range of 0-10 per cent.
“Soaring inflation, rising input cost and slow growth in capacity addition are some of the reasons that are inhibiting growth in specific sectors,” said CII Director General Chandrajit Banerjee.
Out of the 127 sectors covered by the survey, 43 (33.8 per cent) have registered a growth rate of more than 20 per cent in April-September 2010, compared to 14 sectors (11.0 per cent) in April- September 2009, which shows a marked improvement.
The sectors registering high growth rates have decreased from 30 (23.6 per cent) in April-September 2009 to 22 sectors (28.2 per cent) in the same period this year as more number of sectors have shifted to excellent growth bracket.
The share of the sectors registering a negative growth rate has significantly declined to 7.9 per cent (10) in April-September 2010 from 30.7 per cent (45) in the corresponding period of the previous year, which is a clear sign of improvement. The share of the moderate growth sector has increased from 34.6. per cent to 40.9 per cent during the same period.
Sectors reporting excellent growth rates are aluminum, nitrogen fertilisers, natural gas, sponge iron, switch gears, motor starters and others. Polyester filament yarn, polyester staple fiber, edible oils like groundnut oil and sunflower oil reported negative growth.
