Monetary tightening, an appreciating rupee and the adverse effects of free trade agreements have pulled down industrial growth with output in as many as 17 sectors shrinking during the first six months of the current financial year, the Confederation of Indian Industry (CII) has said.
CII's numbers, based on a survey of its members, contradicts the official index of industrial production figures that showed that there was all but a marginal decline in growth to 9.8 per cent in April-August compared with 11 per cent overall industrial growth in the same period of 2006-07.
The survey results comes a day ahead of the official half-yearly industrial growth figures that will be released on Monday. Industrial growth had fallen to 7.1 per cent in July, raising concerns about a possible industrial deceleration.
The chamber warned of an impending slowdown if appropriate policies were not prescribed. "It is a matter of concern that more than 50 per cent of the manufacturing sector has recorded either moderate growth or declines," said CII Industry Council Chairman Satish Kaura.
According to the CII survey, of 91 sectors, 15 industries reported growth rates of more than 20 per cent, 22 posted rates of 10-20 per cent, 37 grew by less than 10 per cent and output in 17 actually declined.