New Delhi: Indian industry is coming out of a recession with a majority of sectors
showing either clear signs of revival or moderate growth, according to a survey
released on April 8.
The Confederation of Indian Industry (CII), in a survey of 116 sectors for the
financial year ended March, found 65 sectors exhibited growth of up to 10 per cent
over 2001.
Fifteen sectors showed growth rates of between 10 to 20 per cent, and six of more
than 20 per cent, while 30 sectors recorded negative growth.
"The high incidence of moderate growth rates in the survey reflects the downtrend in
the manufacturing sectors witnessed in the first three quarters of the year due to
the overall slowdown in the economy," the survey said.
It said the growth rates of industry sectors showing signs of revival were expected
to pick up between April and June, provided the government keeps to the reform
proposals outlined in the Budget.
"For the next six months, the survey foresees a silver-lining based on the policies
and programmes initiated by the government in some sectors," it said.
"For this, the process of reform measures already initiated in some sectors and
which have started bearing fruit need to be further strengthened with time to time
evaluation."
The survey said the negative growth seen in 30 sectors was mainly due to the
slowdown in the auto sector and the slack in the production of basic goods like
crude oil, fertilizer, cold rolled steel and consumer durable items.
India's economy grew by 6.3 per cent in the three months to December from a year
earlier driven by a strong performance by the agricultural sector, up from 3.4 per
cent in 2001, the government said earlier.
The CII survey said the government needed to change the import duty structure to
discourage the import of used goods while encouraging greater value addition.
"Many sectors have borne the brunt of Chinese competition, free imports under the
Indo-Nepal treaty, competition from unorganised sector and duplication of brands as
well as manufacture of spurious products," it said.
The CII survey highlighted the need for constant monitoring of the petroleum
situation after the end of state-controlled prices from this month, as well as
keeping tabs on food stocks and subsidies.
The survey added a note of concern on exports, which "have suffered a major
setback".