Manufacturing sector gained momentum in H1, exports positive

Bullish trend due to revival in the economy and pick-up in overall demand in many sectors has led to rapid growth of the manufacturing sector in the first half of current fiscal.

The latest CII-ASCON survey for the period April-September 2003 strongly indicates continuous bullish growth in the manufacturing sector. It also reveals significant growth in the number of sectors having excellent and high growth which were registering negative and moderate growth in the corresponding period last fiscal. According to the survey, out of the total 133 sectors, 16 have reported an excellent growth rate of more than 20 per cent compared to 9 during the earlier survey while 35 sectors have grown between 10-20 per cent and 59 sectors have registered moderated growth between 0-10 per cent. The number of sectors registering negative growth has reduced to 23 compared to 28 sectors in the earlier survey.

The survey stated that due to rise in demand, machine tools, medium and heavy commercial vehicles, utility vehicles, cars, three wheelers, aluminium are in the excellent growth sector while electronic components, ball and roller bearings, paints, sponge iron, soda ash are in the high growth sectors. Forgings, beer, biscuit industry have achieved high growth of 10-20 per cent from moderate growth.

The survey also revealed that hydrogen gas, processed fruit and vegetables have achieved moderate growth from negative growth during the same period last year. However, mopeds, vanaspati, black & white televisions, edible oil, groundnut oil, cigarettes and tobacco are in the negative list. It also noted that the overall picture of exports as compared to the previous corresponding quarter is very positive.