Manufacturing sectors record low growth - CII Ascon Survey
12 Nov '07
3 min read
Confederation of Indian Industry (CII) industry survey for April 2007- September 2007 over April 2006 – September 2006, which tracks the performance of the various sectors of the industry was released here yesterday.
The sectors showing excellent or high growth has reduced compared to last quarter. More sectors have recorded a low growth below 10%.
Out of a total of 91 sectors reporting production 15 sectors reported excellent growth rate of more than 20% and 22 sectors recorded high growth rate of 10-20 percent.
37 sectors recorded a moderate growth rate of less than 10 percent and 17 sectors recorded negative growth rate, The percentage of sectors in excellent and high category has declined while the percentages increased for moderate and negative category over the period April 2007 to June 2007.
While releasing the CII ASCON Survey for the period April 07 to September 07, Mr Satish Kaura, Chairman, CII Industry Council, said “it is a matter of concern that more than 50% of the manufacturing sectors have recorded either moderate or negative growth”.
These low growth rates were mainly due to high interest rates prevailing during the period, reduced credit availability and rupee appreciation.
Another factor that has emerged over the last 6 months is the impact of the FTAs signed with some of the countries in the last two years.
According to him the survey has revealed that Automobile industry including motorcycles, three wheelers, are amongst the sectors in the negative sales growth category.
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