NCR tops in manufacturing strength: CII

CHANDIGARH: National Capital Region comprising Delhi, Gurgaon, Faridabad and Noida is the only area in the north that has shown an improvement in terms of manufacturing strengths compared to the rest of the country.
This has come to light in a CII (Northern Region) report titled Strategising for a Competitive Manufacturing Sector in the Northern Region.
Auto ancillaries account for the majority of manufacturing units in NCR and are primarily driven by the auto majors based in the area.
The CII study is based on a survey of 106 companies across different sectors and interactions with about 50 CEOs and heads of manufacturing companies in North India.
It says that growth in NCR is on account of foreign investments in manufacturing in sectors such as automobiles and white goods and large operations of companies including Maruti Udyog, Hero Honda, Yamaha, Honda Siel and Honda Motors in the automobile sector.
The report, however, observes that the technology employed by companies in the area is mainly contributed by the foreign players.
It says that there are significant variations among the states with each one showing distinct characteristics.
Taking the case of Punjab, it says that individuals in the state have strong entrepreneurial outlook with even workmen at the shop floor keen on setting up a small business. However, a majority of the entrepreneurs look for quick returns on investments in the short run.
In case of Haryana (areas other than those in the NCR), it says that industrial development in the state is entirely on account of the trickle down effect of the NCR. A majority of respondents in the state expressed concern over excessive government interference in business. The report says that government interference is a serious issue in Uttar Pradesh as well. Except for a few areas such as Ghaziabad, the industry in the state was not concerned about new technologies and upgradation.
Apart from a few exceptions, industry in the other states including Rajasthan, Uttaranchal, Himachal Pradesh and Jammu and Kashmir have been found to be `struggling along''.