Performance of Industry was moderate in first quarter: CII-Ascon

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Performance of Industry moderated
Moderate performance of Industry was seen in first quarter i.e. April-June of the current financial year, survey conducted by Confederation of Indian Industry (CII) and Ascon Corp shows.

The survey was based on the feedback of 135 sectors and divisions representing more than 3,500 companies.

Sectors, including basic goods, intermediate goods, capital goods, consumer durables and non durables participated in the survey.

Reasons contributing to the moderate growth were high inflation, rising input cost and monetary tightening measures adopted by Reserve Bank of India.

Despite all these issues, the ratio of the sectors putting up negative growth fell to 5.2% in the first quarter of the current financial year as compared to 15.5% in the same period last year.

Cement, motor starters, natural gas, sunflower oil, colour picture tube are some sectors that have shown negative growth rates in April-June 2011.

According to the survey, the share of companies from the sectors and industries reporting 'excellent" growth including machine tools, forgings, switchgears, tractors, passenger cars, earth-moving and construction has come down to 20.7% from 27.3% a year ago.

The companies from sectors and industries which showed growth between 10-20% belonged to automobiles, energy meters, ball and roller bearings, crude oil, scooters and polyester staple fibre.

According to the survey, consumer durables had the largest percentage of sectors in the excellent growth category followed by capital goods. On the other hand, consumer non-durables and basic goods performed poorly with a larger share of sectors in the high, moderate or negative growth segments.

OneIndia Money

Read more about: rbi, growth, inflation, industry
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