New Delhi, Dec 8 (IANS): Industry body Confederation of Indian Industry (CII) Monday said that the government's efforts to bolster investments in manufacturing will take the sector on a high growth trajectory.
"There is an optimistic sentiment within the industry, with a strong confidence in new initiatives. The results of the ASCON Survey for this quarter are encouraging," CII director general Chandrajit Banerjee said.
"Though the industry still feels that the complete rebound of manufacturing will take time, the government's focus on ease of doing business and good governance will eventually lead India towards becoming a strong manufacturing base."
The industry body said that its latest survey on July-September 2014, showed that the economic movement has picked up with more sectors showing positive growth trends in the period than the corresponding quarter last year.
The CII ASCON survey, showed that out of 59 sectors surveyed, the number of verticals reporting high growth during the period under review has increased from 26.08 percent in 2013 to 30.4 percent.
According to the report, at the same time, number of sectors registering 'low' and 'negative' growth has marginally gone down from 73.90 percent in 2013 to 69.48 percent in the quarter under review.
Segment-wise white goods, synthetic fiber, consumer non-durables such as imported oils, groundnut oil, rape seeds, along with machine tools and rubber machinery showed healthy growth.
Meanwhile, vehicle industry has witnessed a low to negative growth in most of the segments such as passenger cars, commercial vehicles, utility vehicle, tyres.
However, two wheelers and three wheelers have registered excellent growth.
Basic goods sector too registered low growth with major segments like steel, fertilizer, paints, pig iron, and cement registering growing between 0-6 percent on an average.
The intermediate goods has shown a positive growth trends. Segments such as power cables, circuit breakers, have grown between 10-20 percent.
Commenting on the survey Amitabh Kant, secretary, Department of Industrial Policy and Promotion (DIPP) stated that for economy to grow at 9-10 percent, manufacturing has to grow at 14-15 percent every year.