Manufacturing industry growth remains moderate: ReportJuly 10th, 2011 - 2:00 pm ICT by IANS
New Delhi, July 10 (IANS) Performance of the manufacturing industry was moderate in the quarter ending June 30 owing to high inflation, increase in input costs and monetary tightening measures adopted by the Reserve Bank of India (RBI), said a study by an industry lobby.
The survey, conducted by the Confederation of Indian Industry (CII) and Ascon Corp, is based on the feedback of more than 100 affiliated industry associations and divisions representing more than 3,500 companies.
The respondents cover a wide spectrum of sectors, including basic goods, intermediate goods, capital goods, consumer durables and non durables.
“High inflation, rising input cost and monetary tightening measures adopted by RBI are some of the reasons behind moderating growth in April-June 2011,” CII director general Chandrajit Banerjee said.
Out of 135 sectors covered by the survey, the number reporting excellent growth has declined while the share of sectors reporting high and moderate growth has increased.
Sectors reporting more than 20 percent growth declined to 20.7 percent during the quarter under review, compared to 27.3 percent during the like period of the previous financial year.
Sectors registering high growth of 10-20 percent increased from 28.2 to 31.8 percent.
The share of sectors reporting moderate growth of 0-10 percent increased from 29 to 42.2 percent.
Sectors which showed excellent growth included machine tools (25 percent), switchgears (27.9), tractors (25.5) and earth moving and construction equipment (24) while sectors recording high growth included automobiles (19.4), crude oil (11), energy meters (11.8) and ball and roller bearings (17.2).
Sectors registering moderate growth of 0-10 percent include caustic soda (6.3), fertilizer (9.2), refinery (5.6), steel (5.5), rubber goods (6.5) and bus and truck tyre (8).
Cement, motors starters, natural gas, sunflower oil and colour picture tube are among the sectors registering negative growth.
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