The manufacturing sector, which suffered a strong blow during the downturn that followed the global crisis, is bouncing back with vigour, with a sharp surge in the number of sectors that show dizzy growth.
As many as 50 of 127 sectors surveyed by the Confederation of Indian Industry's
(CII) council of associations (Ascon) reported a growth rate of more than 20 per cent in the April-December period this year over the comparative period of the previous year. The number of industries reporting "high" growth of between 10 and 20 % went down because they climbed up a notch to the "excellent" ranking, CII said. The number of industries categorised as showing "excellent" 20 % -plus growth zoomed up from 29 in the previous year.
In another sign of a robust turnaround, sectors with negative growth also showed a marked decline with only eight sectors reporting "de-growth" compared with 28 last year.
Top-notch growth was witnessed in automobiles, air-conditioners and detergents, showing a consumer-led growth.
Utility vehicles and personal care products recorded 10-20% year-on-year growth in April-December, underlying the strong consumer sentiment.
The data came in the backdrop of finance minister Pranab Mukherjee and deputy chairman of Planning Commission Montek Singh Ahluwalia saying they were looking forward to 9 % overall GDP growth in the next financial year that ends in March 2012.
However, concerns remained in some sectors showing relatively slower growth, such as steel, cement, fertilisers and machine tools that grew less than 10 %.
"While an increasing number of sectors are showing excellent growth, many sectors remain in the moderate growth zone including some core sectors such as cement and steel," Chandrajit Banerjee, director-general, CII said in a statement.
Respondents also complained about cheap second-hand textile machinery and low-priced bearings being imported into the economy, hitting local manufacturers.