22 sectors record higher growth - CII survey

By Our Special Correspondent

NEW DELHI, MARCH 9. Industrial growth appears to have slowed down in 2000-01 with the pace of output higher than the previous year only in 22 sectors. According to data released by the Associations Council (Ascon) of the Confederation of Indian Industry (CII), these sectors include oil and natural gas, food, agriculture and steel. At the same time, the survey for the year shows that 86 sectors out of 109 studied showed positive growth.

The Ascon survey has found that the sectors that have registered higher growth include three wheelers, steel, refractories, air conditioners, machine tools, textile machinery, crude oil, natural gas, diesel, petrol, LPG, carbon dioxide, fertilizers, tea, construction, housing finance, nylon filament yarn, nylon tyre yarn, nuclear power, glass industry and precision tubes.

The annual survey has been compiled on the basis of data provided by the affiliated associations of CII and member companies. The sectors surveyed account for more than 65 per cent of total production in these sectors.

The CII says the data recorded in the Ascon survey continue to give some positive signals for overall industry growth and also export led production growth though there would be stiff competition from cheaper imports

Of the 86 sectors in which positive growth has been recorded, 14 have excellent growth of over 20 per cent and 14 sectors have high growth. Some sectors that had negative growth find place in this category including some sectors which had high growth. For instance, tea production has risen by a marginal one per cent compared to a negative four per cent last year while growth in the nylon filament yarn industry has fallen to 2.6 per cent from 9.2 per cent last year. Refractories show a two per cent growth compared to a negative 5 per cent last year. Similarly soda ash growth has fallen to 0.5 per cent from 15 per cent in the previous year.

The survey reveals that 24 sectors have recorded a negative growth. These include electrical machinery and equipment industry including transformers, power transformers, electric motors, motor starters, power cables, switchgears and transmission line towers. This is said to be due to contraction in demand and slackness in implementing mega power projects.

The automobile segment including scooters, medium and heavy commercial vehicles and mopeds has also registered a negative growth. The downtrend in automobile production has had an impact on the auto component industry which recorded a marginal 1.5 per cent growth compared to 30 per cent in the corresponding period of the previous year. Vanaspati with a negative 3.3 per cent growth as against 33 per cent last year has also suffered a setback because of cheaper imports and impact of Indo-Nepal trade treaty.

The survey finds that of the 45 sectors reporting exports, only 9 sectors show negative growth while 16 show excellent growth. In the automobiles sectors, medium and heavy commercial vehicles, light commercial vehicles, motorcycles, scooters and mopeds have maintained excellent growth in exports in the last two quarters. Other industries which have shown high growth in exports are aluminium, ball and roller bearings, soda ash, textile machinery, nylon filament yarn, malted food and glass products.

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