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Pondicherry records robust performance in IT, says CII

Special Correspondent

BPO segment annual growth put at 70 per cent Lack of beach hotels, resorts and absence of direct flight connectivity and roads were some of the problems faced by the tourism industry, says survey

Pondicherry: A Business Outlook Survey conducted recently by the Confederation of Indian Industry (CII) in the five Southern States of Andhra Pradesh, Karnataka, Kerala, Pondicherry and Tamil Nadu to analyse the performance of top five sectors in each of thee States during the first half (April to September) of 2005-2006 found that Pondicherry reported robust performance in IT sector.

There was 25 per cent increase in revenue and 30 per cent growth in overseas billing. The CII study also predicted a 40 per cent growth in revenue and in overseas billing during October - March 2006.

A release from the CII here said that the study had also found that the BPO segment here was growing at annual rate of 70 per cent in terms of revenues.

Manpower requirements in IT-enabled services and BPO were expected to increase sharply in the coming years.

It also found that the automotive and auto components sector in Pondicherry registered a 15 per cent growth in the sales in the first half (April to September) of the current fiscal as compared to the same period in the previous year. A 10 per cent growth in sales in the second half was also expected and the industry was planning to increase production by 10 per cent.

After identifying the scarcity of raw materials, lack of ancillarisation and outsourcing options as hampering the growth of the industry the study also stated that there was need for changes in existing Labour laws and improvement in quality of roads and other infrastructure sectors in Pondicherry.

Lower customs would reduce operating costs.

Tourism sector

Referring to tourism sector the CII pointed out that foreign tourist arrivals between April-September increased, though foreign exchange earnings were below the expectation. Domestic tourist arrivals also increased.

There would be a further increase between 10 and 15 per cent in the tourists flow in the second half of the fiscal because of festive seasons.

On infrastructure problems encountered in the tourism industry the study said that lack of beach hotels, resorts and absence of direct flight connectivity and roads were some of the problems faced by the industry. Direct international flights would increase foreign tourist arrivals into Pondicherry.

The study also covered the food processing industry's growth rate in production and sales. Despite increase in prices and sales the industry reported a fall in profit margins due to lack of production efficiency.

The industry needed financial assistance for expansion and modernisation.

Chemical industry here was facing restrictions in production because of pollution control drive by the government.

The government could promote growth of chemical industry by a supportive approach.

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