India's manufacturing sector showed marginal signs of recovery in the second and third quarters of the last fiscal as compared to the corresponding quarters in 2007-08, says a report by an industry lobby.
A Confederation of Indian Industry (CII)-Ascon survey said five sectors - fertilisers, low and high density polythene, pig iron, steel and mopeds - moved from negative to moderate growth.
However, the year-wise comparison shows the manufacturing sector growth has significantly slowed during 2008-09 as compared to 2007-08, the report released Sunday said.
"While on a yearly basis the manufacturing sector has slowed down, there are some green shoots from a few sectors that have demonstrated a marginal pick-up during the second half of 2008-09 when compared to the first half. These demonstrate a cautious optimism on signs of recovery," said director general Chandrajit Banerjee.
Sectors reporting high growth are asbestos cement, switch gears, power cables, capacitors, industrial gases like argon, carbon dioxide and hydrogen.
Sectors like bus and truck tyres, commercial vehicles (medium, heavy and light), capital goods, distribution transformer, industrial valves, energy meters and motor starters registered negative growth, CII said.
Sectors in the moderate growth category included cement, passenger vehicles, and white goods and electronic items.
Industrial gases like nitrogen and oxygen, power transformers, and electric two-wheelers showed excellent growth.