Stories
India Manufacturing Sentiment Surges in July September FICCI Survey Reveals
- •India's manufacturing sentiment improved in the July-September quarter due to higher capacity utilisation and increased production levels.
- •About 95 per cent of respondents reported either higher or same production levels for Q2 compared to 77 per cent in Q1.
- •Average capacity utilisation in manufacturing rose to nearly 75 per cent, up from 72 per cent in the previous quarter.
- •Around 43 per cent of surveyed firms plan to hire additional workers in the next three months, showing a positive employment outlook.
- •Key challenges remain, including geopolitical uncertainties, rising production costs, higher raw material prices, and logistical hurdles.
Key Questions Answered
India's manufacturing sentiment improved in the July-September quarter as factories reported higher capacity utilisation and higher or similar levels of production compared to the previous quarter. Approximately 95 per cent of respondents reported either higher or same production levels for Q2, reflecting a rebound from the West Asia crisis.
The existing average capacity utilisation in manufacturing was close to 75 per cent, which is higher than the 72 per cent recorded in the previous quarter.
Challenges faced by respondents in expanding capacities include uncertainty due to the current geopolitical situation involving tariffs, trade restrictions, and demand uncertainty, alongside operational issues such as skill and labour availability, raw material shortages, increasing logistic costs, and regulatory challenges.
