Economic Optimism in Manufacturing Sector

The manufacturing sector is showing signs of robust economic activity with an average capacity utilization of around 75%. A recent Ficci quarterly survey highlights a positive investment outlook, with 42% of respondents planning expansions and investments in the next six months.

Domestic Demand and Order Books on the Rise

Domestic demand conditions are optimistic, with 83% of respondents anticipating an increase in orders in Q3 FY25. This optimism is reflected in the higher order books, signaling a strong future for the sector.

Challenges and Government Support

Despite the positive outlook, challenges such as rising raw material costs and high interest rates persist. However, measures announced in the Budget are expected to mitigate some of these financial pressures, offering a glimmer of hope for the sector's growth.

Export Expectations and Workforce Expansion

On the export front, 65% reported higher exports in Q2, 2024-25, with over 70% expecting an increase in Q3. Furthermore, 35% of respondents are planning to hire additional workforce in the next three months, indicating a healthy expansion phase.

This survey assessed the performance across eight major sectors, including automotive, capital goods, and textiles, drawing responses from both large and SME segments with a significant combined annual turnover.