Industry clocks 10% growth in Q1: CII-Ascon survey
DESPITE an appreciating rupee and hardening interest rates, most sectors in the CII-Ascon survey for the April-June quarter have shown a year-on-year production growth of over 10%. Of the 101 sectors reporting production figures in the survey, 23 reported excellent growth rate of over 20% and 27 sectors recorded a high growth rate of 10-20%. While 36 sectors registered a moderate growth of below 10%, 14 reported a degrowth. “The percentage of sectors in each category remained almost constant over the period April 2006 to March 2007, which reaffirms that Indian manufacturing is on track,” a CII statement said. According to the survey, aluminium, petrol, pig iron, textile machinery, industrial gases, electric fans and microwave ovens were among those reporting excellent growth. One of the new entrants in the category was electric twowheelers. Energy meters, abrasives, industrial valves, machine tools, water equipment and air conditioners figured in the high growth category. “It is good to see that 50% of the manufacturing sectors have shown above moderate growth despite various pressures in terms of the appreciating rupee and hardening interest rates,” CII Industry Council chairman Satish Kaura said. Of the 27 sectors reporting sales growth figures, six registered excellent growth, 11 sectors registered high growth, four sectors reported moderate growth and four recorded negative growth. The excellent growth sectors included sponge iron, textile machinery, water equipment, tractors, electric fans, and electric two-wheelers while the high growth category included ceramics, forgings, industrial valves, scooters and cars. Of the 26 sectors reporting export figures, four posted over 20% growth in the April-June quarter this year over the same quarter last year. While eight sectors figured in the high growth category of 10-20% growth rate, five recorded moderate growth of below 10% and nine registered a fall in exports. Three-wheelers and motorcycles were sectors that registered excellent export growth. Those in the high growth category include ball & roller bearings, forgings, industrial valves, machine tools, water equipment and electric fans. Sponge iron, textile machinery and tyres reported a moderate growth while scooters, cars, tea and ceramics reported an export degrowth.