The Indian manufacturing sector has reported an impressive growth in April-June 2004 and is expected to gain momentum.
Out of the total of 131 sectors reporting production, 36 sectors recorded an excellent growth rate of more than 20 per cent.
This is per a CII-ASCON survey for April-June 2004, over April-June 2003.
Also, 41 sectors recorded a high growth rate of 10-20 per cent, 41 sectors registered moderate growth rate of 0-10 per cent, while 13 sectors reported negative growth.
As compared to the corresponding period last year, only 13 sectors had recorded excellent growth, 45 recorded high growth, 64 sectors reported moderate growth, 22 sectors had registered negative growth.
Auto components, colour picture tube, industrial valves, light, medium and heavy commercial vehicles, cars, utility vehicles, three-wheelers, ball and roller bearings, electrical fans, tractors, sugar machinery, switch gears, edible oils, were in the excellent growth category.
Meanwhile, aluminium, sponge iron, castings, diesel, industrial gases, lectronic components, transmission line towers, drugs and pharmaceuticals were in the high growth category.
As per the CII-ASCON survey, out of the 70 sectors reporting sales, 20 sectors registered excellent growth, 26 sectors registered high growth, and 19 sectors reported moderate growth, while 5 sectors recorded low or negative growth.
Last year, 6 sectors recorded excellent sales growth, 23 recorded high growth rate and 34 recorded moderate growth rates, while 14 sectors had registered negative growth.
The survey said the manufacturing industry is not only experiencing high growth in the domestic front, but is also doing well globally.
The latest survey indicates that out of the 55 sectors reporting exports, 18 sectors have registered excellent growth of more than 20 per cent.
There are 16 sectors in the high growth category, 10 sectors recorded moderate growth, while 11 sectors registered a fall in exports.
The survey also brings out that there are specific issues like high excise duty structure, spiralling price increase of some inputs, low investment in major infrastructure projects, low capacity utilisation, inverted duty structure, unrestricted second-hand goods import which are affecting the Indian manufacturing industry.