The manufacturing sector is continuing with its bullish trend on the back of strong economic fundamentals and a pick-up in overall demand in many sectors, according to an Ascon survey carried out by the Associations Council of the Confederation of Indian Industry.
The sector will remain upbeat and is expected to gain ground, leading to an increase in overall production, sales and exports.
Out of the 129 manufacturing segments reporting production in 2003-04, 26 recorded an excellent growth of more than 20 per cent.
Around 35 segments recorded a high growth rate of 10-20 per cent, 49 registered moderate growth of 0-10 per cent, while 19 reported negative growth in the fiscal.
In 2002-03, out of the 134 segments surveyed, only 15 recorded excellent growth, 34 high growth and 68 reported moderate growth. There were 17 segments that had registered negative growth.
The survey indicated that auto components, colour picture tube, industrial valves, commercial vehicles and cars were among the segments that were in the excellent growth category.
While, aluminium, cold-rolled steel strips, sponge iron, ball and roller bearings, castings, electric motors, oil and gas equipment, electronic components were in the high growth category. Out of the 62 segments reporting sales, compared with 76 last year, 13 registered excellent growth, 19 high growth, 22 reported moderate growth, while 8 recorded low or negative growth.
The survey revealed that auto components, electronic components, industrial valves, fluid power, electric fans, cars, utility vehicles were among the sectors in the excellent growth category.
The survey also said the manufacturing sector was doing well globally. The survey covered 47 sectors, compared with 57 last year, of which 21 had shown excellent growth compared with 22 last year. An over 20 per cent increase in exports is considered excellent.
There were 11 sectors in the high growth category, with a 10-20 per cent increase in exports. Around 9 sectors recorded moderate growth of 0-10 per cent, while only 6 sectors registered a fall in exports.
The survey also highlighted specific issues like an inverted customs duty structure on some products, and low investment in major infrastructure projects, which were affecting the sector.