The Federation of Indian Chambers of Commerce and Industry’s (FICCI) latest survey for January-March FY26 has said that growth sentiment in India's manufacturing sector stays optimistic in the fourth quarter of last financial year (Q4FY26), even in the face of rising input costs and geopolitical uncertainties. The survey stated that the only effect observed was a small decrease in capacity utilization, down to nearly 72 per cent compared to the previous quarter. However, the outlook for future investment remains stable for the next six months.
For the period January-March 2025-26, the survey evaluated the performance and sentiments of manufacturers for eight major sectors, including automobile, capital goods, chemical, fertilizer & pharmaceuticals, electronics & electricals, machine tools, metal, and textiles. The survey collected responses from more than 250 manufacturing units, spanning both large and SME segments, with a combined annual turnover of over Rs 8 lakh crore.
FICCI stated ‘The survey continued to reflect sustained growth and increasing optimism for India's manufacturing sector in Q4. In comparison to Q3 FY26, when 91 per cent of respondents reported higher or same production levels, approximately 93 per cent of respondents reported either higher or same production levels in Q4 FY26. This optimism was also evident in domestic demand, as 89 per cent of respondents anticipated higher or the same orders in Q4 FY 2026 compared to the previous quarter’.
