Spurred by high growth rates of over 20 per cent in a majority of segments, India's manufacturing sector has clocked a growth of 13 per cent during Apr-Dec period of 2006-07, a FICCI survey revealed.
The sectors, which have recorded excellent growth during the nine-month period, include electrical equipment and machinery (25 per cent), power cables (41 per cent), air conditioners (25 per cent), DVD (50 per cent), personal computers (30 per cent), commercial vehicles (37 per cent), textile machinery (25 per cent), flat TV (50 per cent) and others.
Spate of mergers and acquisitions in the manufacturing industry segments, consolidation of the cement Industry, integration of steel industry with the global economy, growing interest of foreign companies in India and increasing export market in many engineering sector has fuelled the boom in the manufacturing sector.
Auto components (15 per cent), automobiles (16 per cent), oil and gas equipment (16 per cent), motor starters (17 per cent), pipes and tubes (14.5 per cent) and electronic components (11 per cent) are the sectors which have recorded high growth, the survey revealed.
Sectors like crude oil, aluminium, steel, electric power generation, nuclear power generation and chemicals have achieved moderate growth.
Whereas natural gas, transmission line towers and soda ash have recorded negative growth.
Of the 86 manufacturing sectors surveyed, 16 sectors belong to basic goods, core sectors, 18 to capital goods, 12 intermediate goods, 29 consumers durables and 11 consumer-non-durable sectors. Of the 86 sectors, 27 sectors have achieved excellent growth of more then 20 per cent, 38 sectors clocked 10 per cent to 20 per cent, 17 sectors achieved moderate growth of 2-9 per cent and four sectors registered a negative rate of growth.
The engineering goods sector consisting mainly of intermediate and capital goods have faired better after coming out of its recessionary phase in 2003. One major factor driving growth in the engineering goods sector is significant investment taking place in manufacturing industries including core sectors, power generation, transmission and distribution sectors, FICCI said in a statement.
There has been increased investment by companies in many sectors like steel, cement, automobiles, auto components, consumer electronics, pharmaceuticals and textiles leading to substantial expansion of capacity.
In addition to a host of liberal policy measures taken by the government since 1991, liberal import policy allowing cheaper import of machinery and equipment through gradual reduction in import tariffs has helped the industry to expedite modernisation and restructuring process with access to technology.