CII sees negative growth in 17 sectors

NEW DELHI: Contradicting the growth numbers given by the government, industry body Confederation of Indian Industry (CII) on Sunday claimed that 17 sectors have recorded negative growth in the first half of the current fiscal.

“It is a matter of concern that more than 50% of the manufacturing sector has recorded either moderate or negative growth,” said CII Industry Council chairman Satish Kaura while releasing the ASCON survey conducted by the chamber.

Contradicting the government’s claim that only one of the 17 industry groups (based on two digit NIC classification) recorded negative growth in April-August 2007, the survey said 17 out of 91 sectors showed negative performance during the first half of the year (April-September). The survey attributed low growth in various segments of manufacturing to rising interest rates, reduced credit availability and a strong rupee.

The FTAs with some countries too have adversely affected manufacturing sector, it said. performance, the survey said, adding, “automobile industry, including motorcycles and three-wheelers, are amongst the sectors in the negative sales growth category”.