India's manufacturing sector is beginning to enter a revival phase according to a survey conducted by the Confederation of Indian Industry (CII).
According to CII director general, Chandrajit Banerjee, the improvement in manufacturing growth has been a result of the stimulus packages announced by the government.
The survey, conducted by CII's Association of Manufacturing, Agriculture and Service Councils (Ascon) functions as a manufacturing output bellwether measured by the union government's Index of Industrial Production (IIP) usually reported with a lag of six weeks.
Growth rates in the CII-Ascon survey are based on data from member firms of CII and affiliated associations which comprise around 65 per cent of total industry output in the country. The survey covered a total of 100 sectors.
The survey reported an increase in sectors that have experienced 'excellent' growth. A growth exceeding 20 per cent is described as excellent. A tenth of the sectors surveyed in the April-September period fell in the category as compared with 7 per cent during the same period from a year ago.
Construction and earth moving equipment reported excellent growth pointing to the improving economic sentiment that has led to rising truck sales in the last two months.
At the same time, high growth sectors (10-20 per cent) remained the same at 26 per cent, sectors categorised 'moderate' (0-10 per cent) fell from 42 per cent to 36 per cent. Aluminium, cement, fertilisers, paints, circuit breakers and light commercial vehicles reported moderate growth.
The 26 high growth segments include aluminium cement, fertiliser, light commercial vehicles and consumer durables while sectors reporting excellent growth include nitrogen, earth moving and construction equipment and motor starters.