High interest cost, falling exports major roadblock
Indian manufacturing sector is likely to witness more than a moderate growth with 8 out of the 10 sectors surveyed reporting not only positive but also high growth for July-September 2009, vis-�-vis same quarter last year
HIGH INTEREST cost and fall in exports would continue to restrain the growth of Indian manufacturing sector in the quarter July-September 2009, according to FICCI Manufacturing Survey. Indian manufacturing sector is likely to witness more than a moderate growth with 8 out of the 10 sectors surveyed reporting not only positive but also high growth for July-September 2009, vis-à-vis same quarter last year.
The eight sectors that are expected to witness high growth are Metal and Metal products, Machinery and equipment, Automotive, Chemicals, Leather, Electronics and Miscellaneous industry, reported FICCI Survey.
The survey was carried out for the quarters April-June 2009 and July-September 2009, based on the responses received from over 250 firms from both large and SME segments.
FICCI Survey pointed-out that credit is still provided at interest rates as high as 16 per cent making the Indian manufacturers totally uncompetitive globally. It also said that bankers are asking for higher collateral security for granting loans.
On exports front, FICCI Survey reported that 5 out of 10 manufacturing sectors are expected to witness fall in their export level in July-September 2009, vis-à-vis same quarter last year. These 5 sectors are textiles, metals, tyres, chemicals and miscellaneous industry.
Textiles sector continues to be a source of worry as most of the respondents in this sector felt that their production in quarter July-September 2009 would be lower than the last year, said FICCI. However, the fall in production seems to have bottomed-out in textiles sector in July-September 2009.
The survey was carried out for the quarters April-June 2009 and July-September 2009, based on the responses received from over 250 firms from both large and SME segments.
FICCI Survey pointed-out that credit is still provided at interest rates as high as 16 per cent making the Indian manufacturers totally uncompetitive globally. It also said that bankers are asking for higher collateral security for granting loans.
On exports front, FICCI Survey reported that 5 out of 10 manufacturing sectors are expected to witness fall in their export level in July-September 2009, vis-à-vis same quarter last year. These 5 sectors are textiles, metals, tyres, chemicals and miscellaneous industry.
Textiles sector continues to be a source of worry as most of the respondents in this sector felt that their production in quarter July-September 2009 would be lower than the last year, said FICCI. However, the fall in production seems to have bottomed-out in textiles sector in July-September 2009.
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