A survey conducted by Federation of Indian Chambers of Commerce and Industry (FICCI) has revealed sustained and continued growth for India's manufacturing sector in the last two quarters of 2023-24 (October-March). Compared to the previous quarter, October-December, when 73 per cent of respondents had reported higher production levels, in the current January-March quarter, around 87 per cent of respondents expected either higher or the same level of production.
Responses have been drawn from over 400 manufacturing units from both large and SME segments with a combined annual turnover of over Rs 3.4 lakh crore. This upbeat assessment of Indian manufacturing is also reflected in higher-order books. As per the survey, 85 per cent of the respondents in the current January-March quarter are expecting a higher number of orders compared to the previous quarter. Domestic demand conditions also show optimism. The existing average capacity utilization in manufacturing is around 73 per cent, which reflects sustained economic activity in the sector, which is more or less the same as reported in previous surveys.
It stated the future investment outlook also looks steady, with over 50 per cent of respondents indicating plans for investments and expansions in the next six months. On the contrary, the availability of raw materials and their escalating prices, uncertainty in global demand, shortage of skilled labour, market volatility, increased power costs, unutilized capacities, and high bank interest rates, are some of the major constraints that are affecting expansion plans of the respondents.
Start Research-backed Investing ...Now. Subscribe to Sapphire
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: