Of the 121 sectors covered by the Confederation of Indian Industry (CII) ASCON survey, 41 grew at more than 20 percent in 2010-11, compared to 34 sectors in the previous fiscal.

The output from 26 more sectors increased between 10 and 20 percent against 30 sectors last fiscal, while 49 sectors grew by up to 10 percent, compared to 23 sectors which logged a similar output in 2009-10, the survey found.

"In spite of high inflation and rising input cost, a vast majority of industry sectors is set to record higher growth in the 2010-11 financial year than in the previous year", Chandrajit Banerjee, CII's director general, said in a statement.

However, some five sectors, including edible oils like sunflower oil, asbestos cement and tea, saw a dip in production. There were 25 sectors that saw a fall in output in 2009-10.

Among the sectors that grew the fastest are machine tools (51 percent), nuclear electricity (39.9), fertiliser (37.2), ball and roller bearings (33), earth moving and construction equipment (30), air conditioners (29.4), vehicle industry (28.2) and textile machinery (25).

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Also according to the survey, on the basis of sales and exports, out of 30 sectors that reported sales figures, 18 were expected to show more than a 20 percent rise, while eight sectors could see sales increase by 10-20 percent.

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The industry body, however, urged the government to address long-pending challenges faced by the manufacturing industry immediately to maintain the growth momentum.

Lack of proper infrastructure in power, transport and water, shortage of skilled labour, poor availability of finance - especially micro finance, delays in environmental clearances and no proper government policy on land acquisition were highlighted as some of the issues that were constraining growth.

"Many sectors are coming under pressure due to rising cost of raw materials and fuel. Rising interest costs will put further pressure on margins in the coming year," Banerjee said.

He added: "To allow industry to expand capacity, the government should pursue the reform agenda, including streamlining of land acquisition and faster environment clearance.