Rising cost, inflation fail to dampen industry mood: Survey

Rising cost, inflation fail to dampen industry mood: Survey

The reason for decline in number of sectors showing 'high growth' between 10-20 per cent to 26 this fiscal from 30 in 2009-10 was stated to be their shifting to the 'excellent category,' the survey said.

Those showing above 20 per cent growth are considered excellent, 10-20 per cent fall in the 'high category' and 0-10 per cent in the moderate group.

The survey showed the number of sectors showing a negative growth was reduced to 5 this fiscal from 25 in the previous year.

"Inspite of high inflation and rising input cost, a vast majority of industry sectors are set to record higher growth in 2010-11 than in the previous year," CII Director General Chandrajit Banerjee said.

However, the CII projection that the overall industry performance in 2010-11 would be better than of the previous year is contrary to official figures which show that the manufacturing growth slipped to 8.6 per cent between April-January from 9.9 per cent.

As per the government's estimates, the country's economic growth is pegged at 8.6 per cent in the current fiscal compared to 8 per cent in 2009-10.

According to the CII-Ascon Survey, the sectors which showed excellent growth included air conditioners, tractors, fertilisers, ball and roller bearings, earth moving and construction equipment, tyres and machine tools.

The sectors which grew between 10-20 per cent comprised of utility vehicles, natural gas, crude oil, power transformers, energy meter and alcoholic beverages.