Manufacturing industry optimistic about growth in coming months: Survey

The apex industry body, Associated Chambers of Commerce and Industry of India (ASSOCHAM), recently released a survey 'ASSOCHAM Manufacturing Survey-2012' which stated that the manufacturing industry seems very optimistic about a significant growth in the coming months. In order to determine the viewpoint of the manufacturing industry on the pessimism surrounding the Indian economy and the future prospects, the ASSOCHAM research bureau interacted with 156 companies from July to September this year. With an increase in domestic demand orders during the course of past six months, maximum manufacturing community respondents said their current domestic sales and production levels have surged significantly as compared to the situation six months ago.

"Some units are doing very well. A few industries were badly hit but post September, the overall scenario seems very positive. There is a correction expected in terms of interest rates and taxation, which will further lead to positive growth between January to March," said Anant Sardeshmukh, director general of Mahratta Chamber of Commerce Industries and Agriculture.

In the survey, about half the respondents said production would be higher as the output growth of the manufacturing industry would improve considerably during the next six months banking on the anticipation of increased overall demand. About 92 per cent of the respondents said their overall costs of production would surge significantly due to rise in raw material prices coupled with high expenditure incurred on fuel, electricity and labour during the last six months. Manufacturers are passing this cost burden on domestic consumer as about 66 per cent of respondents said the current domestic selling price has increased as against the prices prevalent about six months back and the selling price would further increase in the next six months.

"The trend seems to have changed slightly in the last couple of weeks, however, it's too early to conclude what is in store. The market is behaving in a mixed manner of good and bad. But in the long term, by 2013 second half, the wait and the investments should start rolling," said, Amitabh Pant, general manager (Marketing and Pricing), Sandvik Asia Limited. While about 35 per cent said there is no change in the selling price in the export markets due to a gloomy scenario in these markets which does not give them the same leeway.

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