FICCI Survey, CFO Information, ETCFO
India’s manufacturing sector continues to point out regular progress, with steady funding plans and powerful manufacturing ranges, based on the most recent Quarterly Survey on Manufacturing (QSM) by FICCI.
The survey for Q3 2024-25 signifies that 83% of producers reported both greater or constant manufacturing ranges in comparison with final 12 months’s 73%, reflecting optimism within the sector. Moreover, 83% of respondents count on an increase so as volumes for the quarter, reinforcing constructive demand situations.
The funding outlook stays steady, with 42% of respondents planning investments and expansions within the subsequent six months—unchanged from the final survey. Capability utilisation in manufacturing stands at round 75%, indicating regular financial exercise.
Regardless of this, challenges persist. Rising uncooked materials prices, excessive rates of interest, and weak home and export demand stay key considerations. Moreover, companies face difficulties in accessing superior equipment, securing land, and coping with regulatory hurdles, all of that are slowing enlargement efforts.
Export efficiency has improved, with 70% of producers anticipating greater exports in Q3 2024-25 in comparison with final 12 months. In Q2, 65% of respondents had reported export progress.
On the employment entrance, 35% of producers plan to rent extra staff within the subsequent three months. Whereas 80% report no labour shortages, 20% categorical considerations over the shortage of expert staff, highlighting the necessity for ability growth initiatives.
The typical rate of interest for producers stands at 9.5%, although over 80% of respondents affirm ample entry to financial institution funds for working capital and long-term investments.
Whereas the sector stays on a progress path, challenges akin to excessive prices and regulatory complexities might impression future enlargement. Trade leaders hope that measures introduced within the current funds will assist deal with these considerations and maintain momentum within the months forward.
