The manufacturing sector in India enjoyed another robust performance in the first half of the fiscal year, with nearly 65 percent of manufacturing sectors continuing to show substantial growth.
The Manufacturing ASCON survey by the Associations Council of the Confederation of Indian Industry (CII) for April-September 2006 showed that, of the 125 sectors reporting production, 34 recorded a growth rate of more than 20 percent, 47 recorded a growth rate of 10-20 percent, and 31 registered growth of 0-10 percent.
Sectors reporting negative growth fell to 14, versus 20 during the same period last year.
"The Indian economy is poised to reap the benefits that come with a strong manufacturing base in an economy," said Satish Kaura, Chairman, CII Industry Council. "The relentless emphasis that Indian companies have placed on continuously enhancing design and engineering skills, building new capabilities for product and technology innovation and in leveraging resources from around the world to provide value to customers are contributing in transforming 'Made in India' into a global brand."
According to the survey, PVC, switchgears, power cables, circuit breakers, castings, fluid power and nitrogen have all performed well within the Basic and Intermediate Goods sector, while the Capital Goods Sector has been led by boilers, distribution transformers, power transformers, industrial furnace, textile machinery, tractors, transformer and transmission line towers.
The export performance of the Indian manufacturing sector has also gained ground, with abrasives, auto components, ball & roller bearing castings, fluid power, flat glass and three wheelers performing particularly well.
According to the CII Survey, almost every sector is forecasting growth over the next five- to ten-year period, with some predicting a 20 percent growth rate over the next 12 months. The group said most foreign direct investment went into the manufacturing industry last year, a trend that has continued this year.