Manufacturing sector in India is indicative of an underlying inertia: EXIM Bank Study

by Yash Shah

According to a report published by Export-Import Bank of India (EXIM), the recent performance of the manufacturing sector in India is indicative of an underlying inertia, with the share of manufacturing in India’s gross value added declining to 15.1 per cent in 2019-20, as compared to 18.4 per cent in 2010-11. This weakness in the domestic manufacturing sector has translated into greater dependence on imports to meet the growing domestic demand over the years, said Exim Bank. Their study identified select sectors for import substitution and enhancing domestic production to the extent of USD 186 billion. These sectors include electronics, defence equipment, machinery, chemicals and allied sectors, pharmaceuticals and certain agricultural products. The study has also included sectors such as auto components, and iron & steel where, though there is overall trade surplus for India, but in some sub-categories, there is trade deficit, particularly with China.

References
1. https://www.business-standard.com/article/economy-policy/india-should-look-for-outward-investments-to-meet-domestic-needs-report-120091601792_1.html
2. https://economictimes.indiatimes.com/news/economy/foreign-trade/self-reliance-in-select-sectors-can-lead-to-import-substitution-of-usd-186-bn-study/articleshow/78151728.cms
CMIE STATISTICS
Unemployment Rate (30-DAY MVG. AVG.)
Per cent
6.9 0.0
Consumer Sentiments Index
Base September-December 2015
46.5 0.0
Consumer Expectations Index
Base September-December 2015
49.0 +0.6
Current Economic Conditions Index
Base September-December 2015
42.5 -1.1
Quarterly CapEx Aggregates
(Rs.trillion) Sep 19 Dec 19 Mar 20 Jun 20
New projects 3.25 5.55 3.91 0.68
Completed projects 0.85 1.66 1.73 0.24
Stalled projects 0.41 0.61 0.76 0.11
Revived projects 0.43 0.83 0.42 0.59
Implementation stalled projects 0.91 0.13 9.78 0.08
Updated on: 26 Sep 2020 9:28AM
Quarterly Financials of Listed Companies
(% change) Sep 19 Dec 19 Mar 20 Jun 20
All listed Companies
 Income -2.3 -1.7 -4.9 -28.1
 Expenses -3.1 -2.2 -1.8 -28.4
 Net profit -1.3 -10.8 -47.4 -41.1
 PAT margin (%) 5.3 5.1 2.4 5.3
 Count of Cos. 4,452 4,431 4,245 4,112
Non-financial Companies
 Income -6.3 -5.5 -8.9 -38.4
 Expenses -6.7 -6.4 -4.9 -38.4
 Net profit -13.8 -13.8 -48.4 -60.2
 PAT margin (%) 5.7 5.7 3.4 4.2
 Net fixed assets 10.4 12.9
 Current assets 4.9 3.0
 Current liabilities 5.0 4.8
 Borrowings 8.3 14.7
 Reserves & surplus 5.7 2.1
 Count of Cos. 3,328 3,307 3,199 3,098
Numbers are net of P&E
Updated on: 26 Sep 2020 9:28AM
Annual Financials of All Companies
(% change) FY18 FY19 FY20
All Companies
 Income 8.4 13.4 1.2
 Expenses 9.9 13.6 1.6
 Net profit -40.3 21.9 -12.3
 PAT margin (%) 2.0 2.4 5.1
 Assets 10.9 9.3 9.9
 Net worth 7.5 8.6 6.8
 RONW (%) 3.5 4.3 7.2
 Count of Cos. 27,531 26,568 2,842
Non-financial Companies
 Income 8.7 13.9 -2.3
 Expenses 8.8 14.0 -1.6
 Net profit -9.0 25.0 -19.7
 PAT margin (%) 2.7 3.2 5.8
 Net fixed assets 7.1 5.3 16.0
 Net worth 6.1 8.6 3.9
 RONW (%) 5.7 6.9 9.6
 Debt / Equity (times) 1.0 1.0 0.7
 Interest cover (times) 2.1 2.4 3.6
 Net working capital cycle (days) 77 70 47
 Count of Cos. 22,401 21,603 2,134
Numbers are net of P&E
Updated on: 20 Sep 2020 8:59PM