Despite the recession in developed countries, Indian manufacturing accelerated in the second quarter of 2023-24 and is expected to continue in the following quarters of the fiscal year 2023-24, according to the latest quarterly poll from industry group FICCI.
The industry body's latest quarterly survey assessed the performance and sentiments of manufacturers for the July-September 2023-24 quarter for ten major sectors -- automotive and auto components, capital goods and construction equipment, cement, chemicals fertilizers and pharmaceuticals, electronics and white goods, machine tools, metal and metal products, textiles, apparels and technical textiles, paper, and miscellaneous, as per ANI.
It requested answers from around 380 industrial firms, both large and small and medium-sized, with a total annual revenue of more than Rs 4.88 lakh crores. In the Indian manufacturing sector, average capacity utilization is now about 74%, slightly higher than the 73% reported in the preceding quarters.
The future investment outlook has also improved over the previous quarter, with more than 57% of respondents reporting intentions for investments and expansions in the next six months. This is also an improvement over the prior survey. In terms of main restrictions, demand is a limiting factor in realizing the actual potential of India's manufacturing industry, with more than 40% of respondents seeing it as a serious barrier.
"Whether it is domestic demand or exports, this remains a major limiting factor. Some other constraints, though not major ones are high raw material prices, increased cost of finance, logistics, and other supply chain disruptions are some of the major constraints which are affecting expansion plans of the respondents," finds the FICCI survey
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