Home / Knowledge / News / Textiles / Manufacturing sector may return growth of 9.5% in 2008-09
Manufacturing sector may return growth of 9.5% in 2008-09
04
Aug '08
The worst many be over for India's manufacturing sector. The overall manufacturing growth rate is projected to rise to 9.5% in 2008-09, after declining to 8.8% in the 2007-08 from a high of 12.3% attained in the previous year (2006-07).

This prognosis is held out by the FICCI Survey on Manufacturing Industry, which analysed the responses from 25 Basic Goods/Core sectors, 21 Capital Goods sectors, 15 Intermediate Goods, 26 Consumers Durables, and 13 Consumer-Non-Durable sectors.

Of the 100 sectors surveyed, as many as 67 sectors are poised to achieve 'excellent' to 'high' growth rates ranging 10 to 20 per cent or more. While 12 sectors project excellent growth of more then 20 per cent or more, 55 sectors foresee high growth of 10 to 20 per cent, 32 sectors expect moderate growth of up to 10 per cent and 1 sector has projected a negative growth during 2008-09.

The charge has been led by specialty chemicals, earth moving and construction equipment, industrial valves, printing machinery, frost free refrigerators, micro wave ovens and skin care and cosmetics etc.

The FICCI Survey notes that the reasons for such an optimistic projection are increased investment by companies leading to substantial capacity addition, increasing mergers and acquisitions helping industry to reap economies of scale, focus on high-end and superior technology products, higher demand for sophisticated lifestyle products, entry of foreign companies in various industry segments and higher export prospects for many sectors.

FICCI believes that while the present situation may continue for next two three months, the manufacturing industry would be able to revive and achieve higher growth during the terminal period of the financial year 2008-09 provided the government takes some pro-active reform measures to redress the genuine grievances of the manufacturing industry.

While the farm loan waiver scheme and the proposed salary hikes of government employees will help to generate more demand for manufactured items, FICCI is of the view that there is need for stimulating consumption/demand; reducing interest rates; and no further cuts in custom duty on manufactured goods. There is the need for ensuring relief package for exporters; increasing rate of depreciation; reducing corporate tax rate and correcting anomalies due to inverted duty structure existing in the tax structure and arising out of FTAs/RTAs.

In order to make growth of this order sustainable, the FICCI survey also underlines the need for adopting appropriate raw material policies; improving regulatory environment; helping capacity building of SMEs; skill development and improving infrastructure for helping the industry to achieve lower cost, improved quality and better performance and for higher manufacturing growth.

The sectors which are projected to have excellent growth during the financial year 2008-09 are: specialty chemicals (22%), power cables (20%), earth moving and construction equipment (20%), industrial valves (20%), printing machinery (20%), viscose fibre (20%), frost free refrigerators (25%), DVD players (25%), micro wave ovens (25%), skin care and cosmetics (20%), deodorant (25%), and shaving cream (22%).


Must ReadView All

Courtesy: EVG photos from Pexels

Apparel/Garments | On 16th Aug 2018

Bangladesh ups garment export target to $32.689 bn

The Government of Bangladesh has increased the country’s readymade...

Courtesy: PR Newswire

Apparel/Garments | On 16th Aug 2018

Shoppers go to stores for thrifting experiences: Survey

Despite growth in e-commerce, shoppers still head to retail stores...

Pak ministry invests in training textile sector workers

Textiles | On 16th Aug 2018

Pak ministry invests in training textile sector workers

Pakistan’s ministry of commerce and textile industry is offering...

Interviews View All

Shiladitya K Joshi
Truetzschler India Private Limited

India ITME provides a platform to interact with our stakeholders

Janak Dhamanwala & Sunil Dhamanwala
Jansun

Moving towards sustainability is also a social change

Viral Desai
Zenitex Mill Pvt Ltd

Full of green energy

Ashish M Amin

Premier Looms is a leading provider of cutting-edge machinery and...

Shivani Swamy

The Livinguard Technology is owned by Green Impact Holding AG based in...

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

Prof Seokheun (Sean) Choi
Binghamton University, State University of New York (SUNY)

A team of researchers from the State University of New York (SUNY),...

Luis Quijano
Liberty University

Focusing on bold patterns and colour palettes, Luis Quijano, a student at...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Anisha Chaudhari
Threads & Shirts

Threads &amp; Shirts is a freshly-tailored concept providing men/women a...

Priya Somaiya
Usha Social Services

The Usha Silai label from Usha International is all set for a retail...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


August 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search