India s manufacturing sector continues to maintain the growth momentum during the first quarter, April-June 2010, revealed the CII ASCON survey for the period April-June 2010 over April-June 2009. While releasing the survey after the first ASCON meeting of the year held on 15th July 2010 in Bangalore, Mr. B Muthuraman, Vice President CII and Chairman, CII Associations Council said The industry can do even better provided an even more conducive environment for the industry is created .
The CII ASCON survey revealed that out of 110 sectors covered, 30 sectors (27.3%) have registered excellent growth rate of more than 20% in April- June 2010 compared to 10 sectors (9%) in April- June 2009. The number of sectors registering high growth rate has also increased from 18 (16.4 %) in April-June 2009 to 31 sectors (28.2%) in April-June 2010.
The share of the sectors registering negative growth rate has significantly declined to 15.5% (17 sectors) in April-June 2010 from 41% (45 sectors) in the corresponding period of the previous year which is a clear sign of improvement. The share of the moderate growth sector has also declined to 29.0% from 33.6% during the same period.
According to the survey, the sectors which have recorded excellent growth are: Air conditioners (50%), Refrigerators (32%), vehicle industry (33.2%), passenger cars (32.5%), natural gas (43.5%), Ball & roller bearings (30%), Machine tools (16%).
Energy meters (16.06%), forging (15.0%), nylon filament yarn (10.2%), fluid power (15%), electric fans (16.0%), induction furnace (10.0%) are the sectors in the high growth category while sectors like asbestos cement (6.4%), caustic soda (2.06%), rubber goods (5.0%), sponge iron (1.64%) are in the moderate growth category. Polyester staple fibre (-0.65%), tea (-4.5%), groundnut oil (-28.4%), cigarette & Tobacco (-2.0%) reported negative growth.
The CII ASCON survey also reveals that out of 38 sectors reporting for sales, 16 sectors recorded excellent growth, 8 sectors reported high growth, 8 sectors reported moderate growth and 4 registered negative growth.
CII ASCON survey also tracked export performance of manufacturing industries. Out of 23 sectors reporting exports, 11 were in the excellent growth category, 4 have shown high growth, 2 sectors were in the moderate growth category while 5 reported negative growth.
The survey also highlights some of the general and sector specific issues faced by the industry. Rise in the cost of raw material, Infrastructure bottlenecks, Environmental regulations and procedures, Threat of Chinese imports, Weak global demand, Lack of technical skills and R&D activities, Inadequate credit supply, and Non uniformity of VAT structure, are some of the key issues faced by the industry.
According to Mr. Chandrajit Banerjee, Director General CII, actions such as faster implementation of ongoing and already announced projects, improving regulatory environment, early implementation of the proposal to create National Manufacturing Investment Zones (NMIZ s), ensuring timely availability of credit and directing banks to provide easier and cheaper credit especially for SMEs are vital to higher manufacturing growth.
The CII ASCON survey revealed that out of 110 sectors covered, 30 sectors (27.3%) have registered excellent growth rate of more than 20% in April- June 2010 compared to 10 sectors (9%) in April- June 2009. The number of sectors registering high growth rate has also increased from 18 (16.4 %) in April-June 2009 to 31 sectors (28.2%) in April-June 2010.
The share of the sectors registering negative growth rate has significantly declined to 15.5% (17 sectors) in April-June 2010 from 41% (45 sectors) in the corresponding period of the previous year which is a clear sign of improvement. The share of the moderate growth sector has also declined to 29.0% from 33.6% during the same period.
According to the survey, the sectors which have recorded excellent growth are: Air conditioners (50%), Refrigerators (32%), vehicle industry (33.2%), passenger cars (32.5%), natural gas (43.5%), Ball & roller bearings (30%), Machine tools (16%).
Energy meters (16.06%), forging (15.0%), nylon filament yarn (10.2%), fluid power (15%), electric fans (16.0%), induction furnace (10.0%) are the sectors in the high growth category while sectors like asbestos cement (6.4%), caustic soda (2.06%), rubber goods (5.0%), sponge iron (1.64%) are in the moderate growth category. Polyester staple fibre (-0.65%), tea (-4.5%), groundnut oil (-28.4%), cigarette & Tobacco (-2.0%) reported negative growth.
The CII ASCON survey also reveals that out of 38 sectors reporting for sales, 16 sectors recorded excellent growth, 8 sectors reported high growth, 8 sectors reported moderate growth and 4 registered negative growth.
CII ASCON survey also tracked export performance of manufacturing industries. Out of 23 sectors reporting exports, 11 were in the excellent growth category, 4 have shown high growth, 2 sectors were in the moderate growth category while 5 reported negative growth.
The survey also highlights some of the general and sector specific issues faced by the industry. Rise in the cost of raw material, Infrastructure bottlenecks, Environmental regulations and procedures, Threat of Chinese imports, Weak global demand, Lack of technical skills and R&D activities, Inadequate credit supply, and Non uniformity of VAT structure, are some of the key issues faced by the industry.
According to Mr. Chandrajit Banerjee, Director General CII, actions such as faster implementation of ongoing and already announced projects, improving regulatory environment, early implementation of the proposal to create National Manufacturing Investment Zones (NMIZ s), ensuring timely availability of credit and directing banks to provide easier and cheaper credit especially for SMEs are vital to higher manufacturing growth.
