41 Sectors estimated to grow at 20% in 2010-11 as per CII’s Ascon survey

According to industry body Confederation of Indian Industry’s (CII) Ascon survey, 41 out of 121 sectors was estimated to grow at 20% or more in 2010-11compared to 34 sectors that had reported such growth during 2009-10. The top performers include air conditioners, tractors, fertilisers, construction equipment, tyres, vehicles among others. The survey also showed that higher input costs in the recent past could not restrict higher input costs did not restrict Indian manufacturers from improving performance during the year ending March 31. The total percentage of sectors reporting double digit growth increased slightly in 2010-11. However some sectors like that of tea, asbestos cement, edible oils are likely to report negative growth.

The survey pointed out that several sectors were under pressure due to the rising cost of raw materials and fuel. Rising interest costs is expected to put further pressure on their margins in the coming year.

Sectors that are projected to record high growth (10-20%) for the year ending March 2011 include utility vehicles, natural gas, crude oil, power transformers, energy meters, home and personal care products, automation industry, alcoholic beverages and biscuits. As many as 49 sectors, including caustic soda, soda ash, cement, refinery, steel, rubber goods and ceramics can record growth up to 10%. During 2009-10, less than half such sectors recorded moderate or single digit growth.

According to the CII survey, issues such as lack of proper infrastructure, shortage of skilled labour, poor availability of finance, delays in environmental clearances, lack of structured response and two way communication between the government and industry are some of the constraints that need to be addressed to maintain high growth momentum.