Industry growth in H1 slower: CII survey
A CONFEDERATION of Indian Industry (CII) survey for April 2007-September 2007 says compared with April 2006–September 2006, performance of various sectors of the industry has slowed down. More sectors have recorded growth below 10%. Out of 91 sectors, 15 sectors reported excellent growth rate of more than 20% and 22 sectors recorded high growth rate of 10-20%. Thirty seven sectors recorded a moderate growth rate of less than 10 percent and 17 sectors recorded negative growth rate., The percentage of sectors in excellent and high category has declined while the percentages increased for moderate and negative category over the period April 2007 to June 2007. It is felt that these low growth rates were mainly due to high interest rates, reduced credit availability and rupee appreciation. Another factor that has emerged over the last 6 months is the impact of the FTAs signed with some of the countries in the last two years. Satish Kaura, Chairman, CII Industry Council, says, “The survey has revealed that automobile industry including motorcycles, three wheelers, are amongst the sectors whether sales growth has slowed down. More than 50% of the manufacturing sectors have recorded either moderate or negative growth.” The survey has thrown up early indicators of what could trigger a slowdown in the Indian manufacturing sector in the future. At the same time scooters, mopeds, electric fan, sponge iron, circuit breakers, transformer are in the excellent growth category while asbestos, cement, pig iron, power cables, industrial valves, textile machinery, transmission line towers, air conditioners, microwave ovens were all in the high growth category. Also machine tools, air conditioners, motorcycles are sectors that have done well on the export front, registering excellent growth. High growth category includes vehicle industry, all three wheelers, industrial valves and cold rolled steel and sectors showing negative growth are cement, ceramics, mopeds and rubber goods