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Home -> Finance -> Full Story
Indian industry on path to recovery: CII survey
Monday, April 8 2002 14:56 Hrs (IST)

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".















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