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Manufacturing sector likely to witness moderate growth in Q3FY15: FICCI

24 Nov 2014 Evaluate

According to the Industry body FICCI, Indian manufacturing sector is likely to witness a moderate growth in the third quarter of current fiscal. FICCI Manufacturing Survey highlighted that firms are less optimistic for Q3FY15 than Q2FY15 for the manufacturing sector as the proportion of respondents expecting higher production vis-a-vis last year has fallen to 52% in Q3 from 62% in Q2. However, the growth is likely to be more broad based during the reported quarter as most of the sectors are expecting improvement in production.

The Survey further highlighted that export outlook for manufacturing during Q3 has improved slightly from the previous two quarters but it remains weak and uncertain. The proportion of respondents expecting higher exports in Q3FY15 is 42% compared to 40% in the Q2FY15 and 36% in the first quarter of FY15. Hiring outlook also remains bleak as 73% of respondents are not likely to hire additional workforce in the next three months.

The FICCI Survey has covered 392 manufacturing units from both large and SME segments with a combined annual turnover of over Rs 4 lakh crore. The survey gauges the expectations of manufacturers for thirteen major sectors that include textiles, capital goods, metals, chemicals and cement among others.

The output of manufacturing sector, which occupies 75.52% weightage in the overall index, grew by 2.5% in September. The cumulative growth of country’s manufacturing sector during April-September FY15 stood at 2.0% as compared to 0.2% growth in the same period of previous year.

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