Reflecting a disturbing trend, a survey by industry body CII and ASCON revealed a significant rise in the sectors displaying negative growth in the third quarter of the current fiscal even as high growth sectors shrank considerably.
The survey found that industrial activity in the October- December 2013 quarter remained subdued and grim, treading along the growth path of the previous quarter.
"It is of utmost concern that the majority of segments in basic, intermediate, and capital goods sectors continue to fall in 'low' growth bracket during October-December 2013," CII Director General Chandrajit Banerjee said.
According to the survey, 31 sectors out of total 110 sectors (28.18 per cent) witnessed contraction or negative growth in 2013 compared to 21 sectors out of total 101 sectors (20.8) in 2012.
Meanwhile, high growth sectors shrank to 10.90 per cent (12 sectors out of 110 sectors) in Oct-Dec 2013 from 18.8 per cent (19 sectors out of 101 sectors) in Oct - Dec 2012.
"This continuous trend of slow and deteriorating industrial growth outlines the weakened economic health of the economy," the survey pointed out.
However, the survey also showed a modest drop in the number of sectors witnessing low growth at 52.72 per cent (58 out of 110 sectors) as compared to 56.4 per cent (57 out of 101 sectors) in the same quarter of previous year.
Besides, the percentage of sectors reporting excellent and high growth in current quarter is 19 per cent (21 out of 110 sectors) as compared to 16.8 per cent (17 out of 101 sectors) in the same quarter previous year.
In the Oct-Dec quarter, high-tech electronics such as LED/LCDs and computer tablets are amongst the segments that have recorded excellent growth apart from the scooter and scooterettes segment. Tractors also recorded excellent growth reflecting improved performance of the farm sector.
Meanwhile, the continuing low or negative growth seen in the capital goods sector reinforces the view that new investments are impacted.
