Automotive, IT register 20% growth in TN

The automotive and auto components industry and the IT industry in Tamil Nadu witnessed a growth rate of 15-20 per cent during April-September this year compared with the previous six months period (October 2005 to March 2006), according to a Confederation of Indian Industry (CII) survey.

The survey states that the automotive and auto components industry in Tamil Nadu is growing rapidly over the last couple of years, particularly during April-September this year.

The sector witnessed a growth of 15-20 per cent in terms of production during the last six months as against the previous six months (Oct '05-Mar '06). Sales have also shot up during this period to over 15-20 per cent, according to a bi-annual economic survey of CII (southern region).

The sector is all set for a big jump in the next six months. It is expected that the production and sales in the state would increase by 20-25 per cent during October '06-Mar '07.

During the next six months, exports are expected to increase by 15-20 per cent, while capacity utilisation is expected increase by 10-15 per cent. Inventory will increase up to 5 per cent, the survey says.

The state continues to be one of the most favourable destinations for IT industry in the country. During April '06-Sep '06 period, the IT sector witnessed a growth rate of 15-20 per cent compared with the previous six months period (Oct '05-Mar '06). IT sector's revenue and overseas billing have zoomed, driving the employment scenario of the sector in the state.

It is expected that the revenue would increase by 25-30 per cent during Oct '06-Mar '07 period compared with the previous six-month period. The demand would increase by 30 per cent, while the growth in employment would be 15-20 per cent.

Meanwhile, the industry leaders in the automotive industry have expressed their concern over the lack of availability of cheap and skilled manpower and other problems such as inadequate power supply and poor infrastructural facilities. The major problems for the IT industry are the lack of skilled manpower and infrastructural problems like power cuts.

The CII survey also says that the export of the chemical and fertiliser sector witnessed a growth rate of 20-25 per cent during this period, which has driven the capacity utilisation level by 5-10 per cent. The production and sales of the sector is expected to rise by 10-15 per cent, while export is expected to increase by 15-20 per cent during the next six months.

The state's textile industry witnessed a growth rate of 10-12 per cent during Apr '06 - Sep '06, compared with the previous six months in terms of production and sales.

The sector is expected to witness an increase in terms of production and sales by 20-25 per cent during Oct '06- Mar '07 as against the previous period, while maintaining the current export growth of 15-20 per cent.

The cement industry witnessed a growth rate of 5-10 per cent in production as well as sales during Apr '06- Sep '06 period. The industry would perform better in the next six months as construction activities in India would increase during the winter season. It is expected that the production would grow at 10-12 per cent during Oct '06- Mar '07 over the previous six months.

The survey has identified automotive and auto components, IT, textiles, cement, and chemical and fertilisers industries as the core industrial sectors for the state considering their contributions to the state's economy.