Federation of Indian Chambers of Commerce and Industry (Ficci) in its latest quarterly survey has indicated that due to sluggish exports scenario, the revival prospects for India's manufacturing sector in the October-December quarter of the ongoing fiscal seem to be weakening down, as a lesser percentage of respondents expect high growth to continue in the quarter under review.
Ficci in its survey has said that the percentage of respondents expecting higher growth in the December quarter has gone down to 55 per cent as compared to 63 per cent for the previous quarter, adding that exports are primarily responsible for this less optimistic outlook, besides domestic factors like poor demand conditions, high interest costs. The export outlook for manufacturing in the third quarter followed its trajectory downwards, as the proportion of respondents expecting higher exports in the quarter is 24 per cent as compared to 36 per cent in the September quarter and 33 per cent in April-June of the current fiscal.
The survey pointed that in terms of order books indicating a muted demand conditions, 44 per cent respondents reported higher order books for the October-December quarter which is almost the same as that of the previous quarter. Besides, in terms of investment 68 per cent respondents in the third quarter said that they do not have any plans for capacity additions for the next six months as compared to 73-75 per cent in the previous quarters, implying slack in the private sector investments in manufacturing to continue. Poor demand conditions, high cost of borrowing, delayed clearances and cost escalation are some of the major constraints which are affecting the expansion plans of the respondents.
Further, the survey gauges the expectations of manufacturers for the third quarter for twelve major sectors namely textiles, capital goods, metals, chemicals, cement and ceramics, electronics, auto, leather and footwear, machine tools, food, tyre and textiles machinery.
MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.
To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.
MoneyWorks4Me ensures this through: