Manufacturing in India has accelerated in the second quarter of 2023-24 and is likely to continue during the following quarters of the financial year 2023-24, according to the latest survey by industrial body Ficci.
Despite the deceleration in developed countries, the growth impulse of the manufacturing sector has accelerated. Approximately 57 percent of the manufacturing companies that responded to a FICCI survey reported higher production levels. This fell by 79 percent in the September quarter.
The survey evaluated the performance of ten main sectors, namely, automobiles and automobile components, capital goods and construction equipment, cement, chemical products, fertilizers and pharmaceutical products, electronics and household appliances, machine tools, metals and metallic products, textiles. , clothing items and technical textiles, paper. ., and various.
Responses have been obtained from more than 380 manufacturing units in the large segments and PYME with a combined annual turnover of more than Rs. 4,88 lakh crore. Electronics and household appliances, cement, automobiles and tool machines have shown a strong growth and others have reported a moderate growth. Additionally, 80 percent of those surveyed in the September quarter had a greater number of orders and demand conditions and remained optimistic.
The average utilization of existing capacity in the manufacturing sector is around 74 percent, slightly higher than the 73 percent capacity utilization reported in previous quarters. The paper and paper products registered a capacity utilization of 90 percent, while the cement registered a capacity utilization of 80 percent.
Additionally, 85 percent of those surveyed had more than or the same level of inventory levels. The cost of production has increased to 58 percent of those surveyed compared with 77 percent of those surveyed in the previous quarter. Future investment prospects have also improved, as more than 57 percent of those surveyed reported plans for investments and expansions in the next six months, a figure higher than in the previous survey. However, only 38 percent of those surveyed are considering hiring additional labor in the next three months.
