|Rediff India Abroad Home | All the sections|
'Manufacturing sector shows growth in Q1'
July 31, 2003 16:08 IST
The production trend in the manufacturing sector during the first quarter of the current fiscal has shown continuity in revival and growth over the same quarter last fiscal, the Confederation of Indian Industry said in its latest ASCON survey.
"This is basically due to the revival of the economy and a pick-up in overall demand in many sectors, which were facing negative and moderate growth," the survey said.
Out of the 136 sectors reporting production, 11 sectors registered an excellent growth of over 20 per cent, 40 sectors with high 10-20 per cent growth, 64 sectors moderate 0-10 per cent growth, while 21 sectors have witnessed negative growth.
This is a marked improvement as against the first quarter of the last fiscal when out of the 127 sectors, 15 posted excellent growth, 22 posted high growth, 68 moderate growth, while 22 posting negative growth.
Out of the eight services sectors surveyed, three sectors posted excellent growth, four registered high growth and only one sector posted a negative growth.
"The positive trend which started last year is expected to strengthen, leading to an increase in production, sales and exports," it said.
The survey, however, stressed on improving productivity by the companies and the need to adopt a long term focus on manufacturing.
Power transformers, utility vehicles, cars, tea and fluid power component were the sectors that registered excellent growth, the survey pointed out, adding that electronic components, ball and roller bearings, aluminum, paints and soda ash were the high growth sectors.
Aluminum and forgings have achieved high growth of 10-20 per cent during the first quarter of 2003-04 as against a moderate growth recorded in the same quarter of 2002-03.
Utility vehicles, carbon dioxide gas and cars have achieved an excellent growth when compared with high to moderate growth posted during the same quarter last year.
Hydrogen gas, processed fruit and vegetables have posted moderate growth.
The sectors, which moved from negative to positive growth, are utility vehicles, cigarettes and tobacco, ball and roller bearings, textile machinery and soya oil.
The survey pointed out that six sectors had achieved an excellent sales growth, 23 posted high growth, 34 moderate growth, while 14 registered negative growth in April-June 2003.
Soda ash, fluid power comp, cars, LCVs and utility vehicles fell in the excellent category, drugs and pharmaceuticals in the high sales growth category, while crude oil, diesel and fertilisers were in the negative growth sector.
Out of a total of 61 sectors surveyed for export growth, 25 registered an excellent growth rate, 24 posted high growth, while eight sectors registered negative growth.
Three wheelers, motor cycles, auto components and cement had an excellent export growth during the first quarter of 2003-04.
Almost all segments in automobile sector, except cars and motorcycles recorded negative export growth during the first quarter of the last fiscal.
Light commercial vehicles, electrical fans, pig iron, black and white TV and textile machinery have recorded negative growth.