New Delhi: High energy costs are making
sectors like glass, ceramics and aluminum less competitive,
an Assocham study said.
"High cost of energy consumption (is) killing
competitiveness of Indian industries," the chamber said.
The share of energy component in the manufacturing cost
has reached to the level of up to 40 per cent in some of the
sectors, it said.
"The growth of Indian manufacturing sector, which is on
revival can be hampered by the increasing cost of energy,
Assocham said. Energy cost is a significant component in
India's industrial performance.
Changes in prices of energy resources like electricity,
petrol and diesel have a significant impact on the small
manufacturing units as their cost of production is
comparatively higher, it said.
The manufacturing sector, the worst-affected by the
global slowdown, grew 7.3 per cent in June over 6.1 per cent a
year ago.
The chamber further said slow progress in capacity
additions has accentuated the power supply deficits and "any
slippage in achieving the targets may worsen the situation
further in the face of increasing demand for power from
industry and other sectors".
Bureau Report
First Published: Thursday, August 13, 2009, 21:03