Indian manufacturing industry has done quite well in fiscal 2006-07, according to a Confederation of Indian Industry (CII) survey, as more than 58 per cent of the sectors recorded a growth rate of 10-20 per cent. The CII study, which compares April 2006-March 2007 results with April 2005-March 2006 results, concludes that the manufacturing sector has maintained the growth momentum built up over the last 12 months.

Out of a total of 98 sectors reporting production, 21 sectors recorded an “excellent” growth rate of more than 20 per cent while 36 sectors maintained a growth rate of 10-20 percent. Around 30 other manufacturing sectors registered a “moderate” growth rate of up to 10 percent. Eleven sectors reported negative growth. (see table)

The sectors that have done well on the export front include auto components, sponge iron, forgings, machine tools, three-wheelers, medium and heavy commercial vehicles, and motor cycles. Those falling in the high growth category include ball & roller bearings, cement, ceramics, industrial valves, refractory and earth moving & construction equipment.

Commenting on the findings, CII Industry Council chairman Satish Kaura said, “Now we have the results of the entire financial year before us. It is heartening that over 20 per cent of manufacturing sectors have remained in the ‘excellent’ growth category for two years in succession and a large number have moved to the high growth category from the moderate growth category.”

Out of the 36 sectors reporting sales, 9 sectors registered excellent growth, 15 sectors registered high growth, and 12 sectors reported moderate growth while none of the sectors recorded low or negative growth. Forgings, Machine Tools, Textile Machinery, Tractors, Electric Fans, LCVs, Medium & Heavy Commercial Vehicles and Microwave ovens were some of the sectors in the excellent sales growth category. Those in the high growth category include Cement, Ball & Roller Bearing, Ceramics, Industrial Valves, Earthmoving & Construction Equipment and Water Equipment.