Citing higher production in the ongoing quarter, India’s largest apex body of business organisation, Federation of Indian Chambers of Commerce and Industry (FICCI) in its latest quarterly survey on Indian manufacturing sector has stated that outlook for the manufacturing sector is positive for the January-March quarter of the current fiscal year 2017-18 (FY18).
As per the survey report, the proportion of respondents reporting higher output growth during the Q4 FY18 has increased significantly to 55% from 47% in Q3 FY18. Also, the percentage of respondents reporting low production has come down to 11% in the Q4 FY18 from 15% in the previous quarter of the current fiscal year. It added that in terms of order books, 51% of the respondents said they are expecting higher number of orders as against 42% in the previous quarter, which is a sign of revival.
The report stated that high growth is expected in the automotive and capital goods segments in Q4 FY18, while segments like cement and ceramics, leather and footwear, chemicals and pharmaceuticals are expected to see moderate growth. It also said that low growth is expected in textile machinery and textiles sector in the Q4 FY18. According to the survey, the cost of production as a percentage of sales for manufacturers has risen significantly for 62% respondents in Q3 FY18, on the back of increase in cost of raw materials, increased wages, power cost and higher Goods and Services Tax (GST) rates on certain products.
