Manufacturing zips ahead in Q1

NEW DELHI: The manufacturing sector continues to be on a robust growth path. The latest CII ASCON survey for the first quarter shows that a number of sectors reporting low or negative growth in production have moved into the double-digit growth trajectory.

While commercial vehicles, cars, air-conditioners, edible oil, sponge iron, switchgear, power transformers and textile machinery were among the high-fliers, caustic soda, telecom cable, tea and earthmoving and construction equipment were among the laggards. From the services sector, cellular services and housing finance continued to be the star performers.

Out of the total 140 sectors covered in the survey, as many as 34 sectors registered 20%-plus growth, while another 56 sectors posted 10-20% growth rate. Only 14 sectors, of the total have reported negative growth. The survey reveals that a large number sectors have graduated from the moderate to negative growth rate to double-digit growth rate compared with Q1 of FY06.

Some of the sectors which have reported double-digit growth include diesel, LPG, paints, petrol, plastics, capacitors, auto components, castings, ceramics, electronic components, diesel engine and machine tools.