Posts Tagged ‘growth rates’

Manufacturing Sector Showed Firm Indications of Recovery

Confederation of Indian Industry (CII) survey said India’s manufacturing sector showed firm indications of recovery and was on a higher growth trajectory in the first half (H1) of the current fiscal (2009-10).


However, the survey compared results for April-September 2009 with April-September 2008 and showed that growth rates in the majority of sectors had positive trends in the first half of 2009-10.

Meanwhile, there is also a significant shift in the trends, from the negative and moderate growth category to the high and excellent growth one, as 12% of the sectors registered such a shift in H1 2009-10 compared with all of 2008-09.

The buoyant manufacturing growth in the first half is led by a rise in production of basic goods, intermediate goods and consumer durables while around 10% of the sectors surveyed registered an excellent growth rate in H1 2009-10.

On the other hand, the share of the sectors registering moderate growth declined to 35.8% in H1 this year while Q2 witnessed substantial decline in the share of sectors recording a negative growth rate, to 19.4% from 40 per cent in the first quarter of the current year.

Sectors showing a greater growth rate increased to 35.5% of the total in July–September 2009 while sectors registering an excellent growth rate of above 20% include nitrogen gas, phosphate, motor starters, industrial gasses, and construction equipment.

A high 10-20 per cent growth rate was registered by pumps, light commercial vehicles, cars, scooters and other consumer durables like electronics and home appliances.

Moreover, 20 of 29 sectors have reported negative growth rates in the first half of 2009-10 and with the exception of soda ash, machine tools, cars, multipurpose vehicles and biscuits, all other sectors reported negative and moderate growth rates.

Northern Region – Largest Contributor to the GDP :)

north-india

North India - Largest Contributor to the GDP

CII report states that although the economic growth in the region has underperformed the national average, the Northern Region continued to be the largest contributor to the GDP at 27.5% in 2007-08.

However, it said that it clocked a CAGR of 6.2% against 6.5% nationally while the under performance had been witnessed across primary and tertiary sectors.

Moreover, the northern region has not been able to capitalize on its traditional stronghold –agriculture while it has also not been able to capitalize on the opportunities in the service sector like the other regions.

One of the key reasons of under performance in the primary sector has been slow growth rates witnessed by two of the largest agrarian states in the region – Uttar Pradesh and Punjab, which contribute 57.5 per cent to the region’s primary sector.

🙂

Performance of the northern region has been reasonably good in the secondary sector, driven to a large extent by growth in the construction sector.

Construction, on the other hand, is also the fastest growing sub sector for the region, CAGR of 12.6% over 1999-00 to 2007-08

Other fastest growing sub sectors for the region are transport, storage and communication; Banking & insurance, real estate, ownership of dwellings & business services.

Discussing the state economies, CII offical said that Uttar Pradesh, Rajasthan and Delhi are the three largest economies in the region.

Chandigarh, Uttarakhand and Haryana are the three fastest growing economies in the region.

All northern region state economies have witnessed declining contribution from the primary sector.

The greatest increase in percentage contribution of the secondary sector has been in Uttarakhand, 15 per cent points.

Similarly the contribution of the tertiary sector has witnessed greatest increase in Haryana, 10 per cent points, he said.

🙂