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India Manufacturing Sentiment Surges in Q2 as Capacity and Hiring Rise
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CNBC TV18•06-10-2026, 12:35
India Manufacturing Sentiment Surges in Q2 as Capacity and Hiring Rise
- •Indian manufacturing sentiment improved in the second quarter of FY 2027, driven by higher capacity utilisation and increased hiring plans according to FICCI's survey.
- •Average capacity utilisation rose to 75.5 percent from 72 percent, with about 95 percent of respondents reporting higher or steady production levels.
- •Hiring intent strengthened as 43 percent of respondents plan to add workers in the next three months compared to 35 percent previously.
- •Export performance showed resilience, with 80 percent of respondents reporting higher or steady shipments.
- •Production costs remained a concern for 83 percent of respondents due to expensive raw materials, energy, logistics and a weaker rupee.
Key Questions Answered
Indian manufacturing sentiment improved in the second quarter of FY 2027 as factories raised their average capacity utilization to 75.5%, up from 72% previously.
Hiring intent improved significantly, with 43% of survey respondents planning to add workers over the subsequent three months, compared to 35% previously.
About 83% of respondents reported higher production costs driven by more expensive raw materials, energy, logistics, and a weaker rupee, alongside a rise in the average interest rate paid to 9.1%.
