Rising cost,inflation fail to dampen industry mood: Survey

The survey showed the number of sectors showing a negative growth was reduced to 5 this fiscal from 25 in the previous year.

Rising interest cost and inflation notwithstanding,the industry mood remains upbeat as over one-third of the 121 manufacturing sectors tracked by a CII-Ascon Survey,projected an excellent growth of above 20 per cent for the fiscal 2010-11.

The reason for decline in number of sectors showing ‘high growth’ between 10-20 per cent to 26 this fiscal from 30 in 2009-10 was stated to be their shifting to the ‘excellent category,’ the survey said.

Those showing above 20 per cent growth are considered excellent,10-20 per cent fall in the ‘high category’ and 0-10 per cent in the moderate group.

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The survey showed the number of sectors showing a negative growth was reduced to 5 this fiscal from 25 in the previous year.

“Inspite of high inflation and rising input cost,a vast majority of industry sectors are set to record higher growth in 2010-11 than in the previous year,” CII Director General Chandrajit Banerjee said.

However,the CII projection that the overall industry performance in 2010-11 would be better than of the previous year is contrary to official figures which show that the manufacturing growth slipped to 8.6 per cent between April-January from 9.9 per cent.

As per the government’s estimates,the country’s economic growth is pegged at 8.6 per cent in the current fiscal compared to 8 per cent in 2009-10.

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According to the CII-Ascon Survey,the sectors which showed excellent growth included air conditioners,tractors,fertilisers,ball and roller bearings,earth moving and construction equipment,tyres and machine tools.

The sectors which grew between 10-20 per cent comprised of utility vehicles,natural gas,crude oil,power transformers,energy meter and alcoholic beverages.