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Manufacturing sector showing revival: survey

BS Corporate Bureau in New Delhi

The latest ASCON survey of the Confederation of Indian Industry, covering 127 manufacturing sectors and 12 service sectors, for the period April-June 2002 has indicated a revival in the manufacturing sector over the corresponding period in 2001.

According to the survey, 15 sectors have recorded excellent production growth rate, while 22 have registered high growth.

Twenty-two sectors have seen a decline, while 68 have recorded moderate growth.

According to CII, the improvement in the production trend is due to the revival in the economy, pick-up in the overall demand, stability in the government and its reform proposals.

The performance of the excellent growth category sectors, with production more than 20 per cent, has gone up to 15 in 2002 as compared to six in 2001 in the manufacturing industry.

While the number of high growth category sectors remains the same as past year, the survey shows an increase in the moderate growth sectors to 68 as compared to 50 in the past year.

There has also been a decrease in the decline category from 29 in 2001 to 22 in 2002. Of 17 sectors, including two in the service sector, in the excellent growth category, eight are in the consumer durables sector, four in basic goods, and two in capital goods.

Power Transformers and polymer products like HDP, fluid power component and soda ash are in the excellent growth category.

Among the fastest growing are motorcycles (49 per cent), transformers (31 per cent), and VCP/VCD (25 per cent).

The high growth category includes drugs and pharma, auto components and electronic components.

Hardware and PCs, which were in the excellent growth category past year, have moved to high growth category this year.

Of the 24 sectors in the high growth category of 10-20 per cent, seven belong to intermediate goods sector and consumer durables each, and three each in basic goods and consumer non-durables.

Seventy four of 139 sectors have recorded growth of less than 10 per cent. These include 6 service sectors, besides 68 in the manufacturing sector. The moderate growth category includes 17 sectors in basic goods, 16 in consumer durables, 14 in intermediate goods, and 11 in consumer non-durables.

Aluminium, textile machinery, washing machines, colour televisions, LCVs are other sectors that have moved from decline to growth compared to the corresponding period past year.

Five sectors in capital goods, five in consumer durables, and four in consumer non-durables have shown a decline.

Some of the sectors which moved from growth to decline in April-June 2002 as compared to the corresponding period in 2001 were cars, diesel engines, capacitors and electric motors, the survey pointed out.

According to the survey, some sectors have suffered because of the absence of a clear captive power policy, competition from unorganised sector, duplication of brands and manufacture and sales of spurious products at cheaper prices in the absence of harmonisation of specifications and standards.

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