Recovery in Sight for the Manufacturing Sector
Indian SMEs in the manufacturing sector have suffered heavy losses in the last financial year as a result of recessionary pressures and the deceleration of the industrial sector. However, the overall outlook for the current financial year seems positive.
Industry experts are of the opinion that government initiatives that have been introduced to revive demand in the manufacturing industry might yield good results. These initiatives may help the sector gain a steady momentum by the first quarter of the current financial year.
Grim 2008-09 for the manufacturing sector
In 2008-09, the manufacturing sector reported a drop in growth rates due to the slowdown in industry verticals that are dependent on the sector. This year, over 78% of the manufacturing segments slipped into the negative growth zone.
Several small industrial units engaged in production of auto components, rubber footwear, polymer, pig iron, motor starters and auto cycle tubes were severely affected.
As Deepak Bhatnagar, Director, National Packaging Company, a Bengaluru-based SME, says, “Last financial year was one of the worst years that the manufacturing sector has seen so far. Given last year’s challenging market conditions, a rapid resurgence seems unlikely during the current financial year as well.”
Industry experts are of the opinion that government initiatives that have been introduced to revive demand in the manufacturing industry might yield good results. These initiatives may help the sector gain a steady momentum by the first quarter of the current financial year.
Grim 2008-09 for the manufacturing sector
In 2008-09, the manufacturing sector reported a drop in growth rates due to the slowdown in industry verticals that are dependent on the sector. This year, over 78% of the manufacturing segments slipped into the negative growth zone.
Several small industrial units engaged in production of auto components, rubber footwear, polymer, pig iron, motor starters and auto cycle tubes were severely affected.
As Deepak Bhatnagar, Director, National Packaging Company, a Bengaluru-based SME, says, “Last financial year was one of the worst years that the manufacturing sector has seen so far. Given last year’s challenging market conditions, a rapid resurgence seems unlikely during the current financial year as well.”
Industry bodies hopeful about revival
However, industry experts predict that the manufacturing sector may pick up in the current quarter resulting from an increase in demand for industrial goods in some segments.
According to a recently conducted manufacturing survey by the Federation of Indian Chambers of Commerce and Industry (FICCI), the manufacturing sector is expected to revive in the current quarter. The survey findings revealed that a majority of the manufacturing units will record a healthy growth rate in the April-June quarter as compared to the corresponding period a year-ago. The rise in growth rate of small industrial units is expected to push the manufacturing sector towards the positive zone.
According to Anish Kapoor, Director, DTool Connexion, “Though the demand has started picking up, it is too soon to expect a complete market recovery. By June, however, we anticipate a greater off-take of industrial goods.”
However, industry experts predict that the manufacturing sector may pick up in the current quarter resulting from an increase in demand for industrial goods in some segments.
According to a recently conducted manufacturing survey by the Federation of Indian Chambers of Commerce and Industry (FICCI), the manufacturing sector is expected to revive in the current quarter. The survey findings revealed that a majority of the manufacturing units will record a healthy growth rate in the April-June quarter as compared to the corresponding period a year-ago. The rise in growth rate of small industrial units is expected to push the manufacturing sector towards the positive zone.
According to Anish Kapoor, Director, DTool Connexion, “Though the demand has started picking up, it is too soon to expect a complete market recovery. By June, however, we anticipate a greater off-take of industrial goods.”
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