The survey, which assessed efficiency throughout eight key industries together with Automotive, Capital Items, Chemical substances, Electronics, Machine Instruments, Metals, Textiles, and Miscellaneous sectors reveals continued momentum in manufacturing and order books. Practically 87 per cent of respondents reported larger or identical manufacturing ranges within the second quarter (July-September 2025) in comparison with 77 per cent within the earlier quarter.
Optimism within the sector is being largely pushed by strong home demand, with 83 per cent of respondents anticipating larger orders within the coming months, a development additional boosted by the current GST fee cuts.
The FICCI survey signifies that common capability utilisation stands at about 75 per cent, signalling regular financial exercise. The funding local weather stays constructive, with over 50 per cent of producers planning new investments or capability expansions inside the subsequent six months.
Nonetheless, corporations cited a number of challenges to growth, together with international geopolitical tensions, commerce restrictions, rising operational prices, and labour shortages in particular sectors.
The survey highlights that manufacturing prices stay elevated, with over 50 per cent of respondents reporting larger prices in comparison with final 12 months. The rise is attributed to larger uncooked materials costs, notably of metals, bulk chemical compounds, and power inputs, alongside elevated labour and logistics bills.However regardless of these price pressures, monetary situations seem beneficial. The typical lending fee for producers stands at 8.9 per cent, and 81 per cent of respondents reported enough entry to financial institution funds for each working and long-term capital wants.On the export entrance, greater than 70 per cent of producers count on their exports to be larger or a minimum of just like final 12 months's ranges. The constructive outlook is shared throughout main sectors, together with automotive, electronics, and chemical compounds, the place manufacturing and export orders are exhibiting sturdy momentum.
Hiring sentiment additionally stays upbeat, with 57 per cent of respondents planning to increase their workforce within the subsequent quarter. Whereas 80 per cent of producers report no scarcity of labour, about one-fifth indicated a necessity for extra expert staff, urging enhanced business and authorities collaboration in ability growth.
Sector-wise, sturdy to reasonable development is anticipated throughout industries, with notably strong projections in automotive, electronics, machine instruments, and metals. The sustained optimism displays India's manufacturing resilience amid international headwinds and signifies that the sector is on observe for a powerful growth in FY2025-26.
FICCI report famous that continued coverage assist, funding facilitation, and infrastructure enhancements shall be essential to sustaining this development trajectory, as India goals to strengthen its place as a worldwide manufacturing hub.
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