Most MSMEs belie reports of positive industrial growth
Updated: Mar 13, 2013 11:17:35am
The recovery owing to better performance by the manufacturing and power sectors was a welcome sign for the country which showed a decline during the last two months, especially following RBI pressure to cut interest rates to enhance growth.
The cumulative growth during the period Apr – Jan 2012-13 over the previous year was at 1 per cent.
MSME sectors that showed a growth were leather garments (73 per cent), antibiotic preparations, (18.8 per cent) vitamins (100.7 per cent), carbon steel (25.3 per cent), pressure cookers (29.5 per cent), air conditioners (31.6 per cent), aluminium (71.3 per cent) and rubber insulated cables(140.1 per cent).
However, certain sectors continued to suffer, showing negative growth - Block board (-24.5 per cent), Newspapers (-23.1 per cent), Polythene bags (-44.9 per cent), grinding wheels (-34.8 per cent), plastic machinery (-27.5 per cent), gems and jewellery (-14.8 per cent).
Planning Commission Deputy Chairman, Montek Singh Ahluwalia told reporters that the downslide was over and he was glad with the numbers. "The numbers fits in with the signals we have been getting ...have to see how fast the turnaround happens," he said.
Economic Affairs Secretary, ArvindMayaram echoed similar sentiments. "We certainly believe (that) the economy is bottoming out. We are going to see some growth impulses, and I am confident that we will also have further good news," he said.