The Hindu : Manufacturing sector on the path of revival

Online edition of India's National Newspaper
Monday, Aug 12, 2002

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Manufacturing sector on the path of revival

By Our Special Correspondent

NEW DELHI AUG. 11. The CII-ASCON survey for April-June 2002 as compared to the corresponding period last year indicates a revival in the manufacturing sector.

Fifteen sectors recorded an excellent production growth rate, while 22 saw high growth others had a negative growth and 68 moderate. The survey covered 127 manufacturing and 12 services sectors. The improvement follows a revival in the economy with a pick-up in the overall demand, stability of the Government and its commitment to reforms. The number of sectors in the excellent growth category with a production of more than 20 per cent has gone up to 15 in 2002 compared to six in 2001 in the manufacturing industry.

The sectors in the high growth category remains at 22 but the number in the moderate growth category has increased to 68 from 50. There has been a decrease in the negative growth category from 29 to 22. Out of the 17 sectors, including the two in the services sector, in the excellent growth category, eight are in consumer durables, four in basic goods, and two in capital goods. Power transformers, polymer products, fluid power components 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).

In the high growth category, drugs and pharma, auto components and electronic components were included. Hardware and PCs, in the excellent growth category last year, have moved to high growth category. Of the 24 in the high growth category of 10-20 per cent, seven belong to intermediate goods sector and to consumer durables and three each to basic goods and consumer non-durables.

In all, 74 of the 139 sectors recorded a growth of less than 10 per cent. These include six in the service and 68 in the manufacturing category. 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 and LCVs have moved from negative growth to positive growth. The negative growth category includes eight sectors in capital goods, five in consumer durables and four in consumer non-durables. Some of the sectors which moved from positive to negative growth in April-June 2002 are cars, diesel engines, capacitors and electric motors.

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