Manufacturing to maintain its growing trend: According to Ficci’s most recent quarterly poll, the growth momentum that has been seen in India’s manufacturing sector for the past few months is projected to continue for the next six to nine months. The survey indicates that the average capacity utilisation in manufacturing is currently over 70%, reflecting ongoing economic activity in the industry. As nearly 40% of respondents stated intentions for capacity additions in the next six months by over 15% on average, the future investment outlook also somewhat improved compared to the previous quarter.
Manufacturing to maintain its growing trend: Key Points
- However, the Russia-Ukraine war’s influence on global economic stability and the rise in COVID viral mutation cases globally have made major economies more volatile.
- Major obstacles to the respondents’ expansion plans include high raw material costs, rising financing costs, onerous regulations and clearances, a lack of working capital, high logistics costs caused by rising fuel prices and blocked shipping lanes, low domestic and global demand, excess capacity brought on by a large volume of inexpensive imports into India, an unstable market, and other supply chain disruptions.
- According to the industry chamber, Ficci’s most recent quarterly survey on manufacturing shows that after the Indian economy began to grow again in FY22, the momentum of growth continued in the first and second quarters of FY23, with more than 61% of respondents reporting higher production levels in Q2 (July-Sept 2022-23).
The survey examined the opinions of manufacturers in ten key industries, including capital goods, cement, chemicals, fertilisers, and pharmaceuticals, as well as electronics, machine tools, metal & metal products, paper products, textiles, textile machinery, and miscellaneous, for the second quarter of 2022–2023. More than 300 manufacturing facilities from the big and SME groups responded, with a total yearly turnover of more than Rs 2.8 lakh crore.
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