The business confidence survey (Ascon) by Confederation of Indian Industry, which analysed the industrial growth in various sectors during April-October 1998, listed heavy and medium commercial vehicles and all three-wheelers in the negative growth rate category as compared to their growth in same period last year.

In the basic goods category, pig iron, caustic soda and soda ash also reported a negative growth rate, while in the consumer non-durables sector, sugar, vanaspati and processed fruit and vegetables reported a minus growth rate.

Air conditioners, motor cycles, watches and clocks showed a growth of over 20 per cent while in the services sector, software and housing finance reported above 20 per centgrowth compared to the first seven months of 1997. Basic goods like cast iron spun pipe, paints, consumer durables like refrigerators, all two wheelers, tape recorders water coolers reported high growth of 10 to 20 per cent during April-October, the CII survey said.

In the capital goods sector, sales of telecom equipment, diesel engines, basic goods like cement, oil refinery, natural gas, petrol and LPG, fertilisers showed only a moderate growth of less than 10 per cent during the period as compared to the same period last year, it said.

Analysing exports of various goods during April-September 1998, the survey said phosphate fertiliser, caustic soda, soda ash, pig iron, cement and steel in the basic goods category reported negative growth compared to last year.

Exports of automobiles, cars, motor cycles, mopeds and all two wheelers also showed dismal performance of negative growth during the first half of current fiscal. However, exports of software and construction (project) and multi-utility vehiclesshowed above 20 per cent growth rate compared to the first half of 1997.

Polyester filament yarn also showed excellent growth rate of 20 per cent. In the basic goods segment, exports of cold rolled steel strip, aluminium, capital goods like diesel engines, earth moving & construction equipment reported high growth rate of 10 to 20 per cent. Exports of scooters, colour TVs, paints, telecom equipment, however, reported a moderate growth of only less than 10 per cent, the survey said.

The survey said shifting government policies coupled with demand slowdown have hit badly the Indian business already reeling under industrial recession).

The CII survey on business confidence (Ascon) which analysed the business confidence during April-October 1998 also blamed high excise duties and government's failure to implement various policies for poor business environment.

Increased cost due to transaction cost and time, rising infrastructure cost, anti-dumping against India were some of the key issues that hitcountry's exports during the first seven months of this fiscal, the survey released today said.

It also blamed declining market for Indian products in South-east Asia and Russia, and anti-dumping duties imposed on the country for the poor export performance. Other domestic issues that hit the business community during the period were changing transmission policy, failure of the government to implement policies in housing, drugs and pharmaceuticals and sugar sector, it said.

The survey also blamed the government for not implementing packages announced in various sectors including commercial vehicles, capital goods and steel sector. Further, adverse bilateral trade agreements and labour law reforms hit the business confidence badly, Ascon said.