The manufacturing sector continues to be bullish in the second quarter of 2003-04, according to the latest Confederation of Indian Industry-Ascon survey.
The survey has compared growth rates across sectors and industries during April-September 2003, against the corresponding period last year. It reveals that the manufacturing sector is upbeat and this trend, which began last year, is expected to continue.
| Looking up |
| Of the 134 sectors that reported a growth in production in the second quarter , almost 80 per cent have grown at 0-20 per cent
Only 28 sectors have seen a fall in production The services sector has also shown a revival, with 10 of the 11 industries surveyed showing high rates of growth Of the 61 sectors surveyed, 28 achieved "excellent" growth in exports, 24 "high" growth, four "moderate" growth, while five registered a fall |
These results are based on feedback received from member companies of the chamber and 96 manufacturing associations.
The sectors that recorded high growth rates during April-June have continued to perform well in the second quarter, primarily because of a revival in the economy and a pick-up in demand in several sectors, which had been showing negative to moderate growth earlier.
Of the 134 sectors that reported a growth in production in the second quarter of 2003, against 131 during the corresponding period last year, almost 80 per cent have grown at 0-20 per cent. Only 28 sectors have seen a fall in production.
The services sector has also shown a revival, with 10 of the 11 industries surveyed showing high rates of growth.
Of the nine sectors showing growth rates of about 20 per cent, five belong to consumer durables, three to intermediate goods and one to basic goods.
The survey reveals that light commercial vehicles, cars, utility vehicles, cellular services, housing finance, domestic software, audio products, air-conditioners, personal computers, sanitary ware, construction and personal healthcare are some industries that fall in the "high" growth category.
Scooters, mopeds, vanaspati, black and white televisions and groundnut oil, on the other hand, continue to show declining growth.
The survey also reveals that there is an upward trend in overall exports, compared with the previous quarter. Of the 61 sectors surveyed, 28 achieved "excellent" growth in exports, 24 recorded "high" growth, four registered "moderate" growth, while five registered a fall.
The survey points out that the market has become more price sensitive and rewards process-improving strategies. Companies delaying investments in technology are not being able to compete.
It also identifies certain sectoral issues that need immediate attention. Apart from concerns about market demand in many sectors, dumping and its adverse impact on many sectors needs urgent attention.
There is also a need for a special package for power-intensive export-oriented industries.
