Monday 4 June 2012

Industry performance may decelerate in first quarter: Survey

Our Bureau




New Delhi, June 3: 

On the back of low investment spending, lack of credit flow, rupee depreciation, inflation, trade and fiscal deficits, and uncertain global recovery, industry performance is expected to decelerate in the first quarter of 2012-13, says a CII ASCON Survey.

The survey, which covered 114 sectors, comprising over 35,000 companies, for the period April–June 2012 (estimated), shows a sharp deceleration in the growth of industrial sectors.

“The situation calls for concerted efforts from the Government and the Reserve Bank to ensure that we have a cohesive economic recovery plan,” said Mr Chandrajit Banerjee, Director-General, Confederation of Indian Industry.

The percentage of sectors with high growth (10-20 per cent) has decreased to 24.5 per cent in the first quarter 2012-13 from 31.8 per cent in the year ago period.

Similarly, the sectors, estimated to fall in the negative territory, have increased from 5.2 per cent in the first quarter of 2011 to 15.7 per cent in the corresponding period this fiscal.

Sectors such as textile machinery, transformer and pumps among others are estimated to remain in the negative territory.

Some of the sectors estimated to register excellent growth rates (less than 20 per cent) are LCD/LED, microwave ovens among others.

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