Manufacturing outlook positive for January-March quarter: FICCI

Manufacturing outlook positive for January-March quarter: FICCI

India News

Automotive and capital goods sectors are likely to beat other sectors in terms of expected growth for the last quarter ending March, 2018 even as a positive outlook is expected for the entire manufacturing sector in Q4, Ficci said On the other hand, moderate growth is expected in cement and ceramics, chemicals and pharmaceuticals, leather & footwear, paper, machine tools, metals and metal products, electronics & electricals and food products. Textile industry as well as the allied textile machinery sector will see low growth in the quarter. According to a survey conducted by Ficci ( Federation of Indian Chambers of Commerce and Industry), the proportion of respondents reporting higher growth for the last quarter of the ongoing fiscal has increased significantly to 55% from 47% in Q3. Also, 51% of respondents in Q4 are expecting greater number of orders as against 43% of respondents in Q3, hinting at a sign of revival. However, that said, in terms of capacity addition, 64% respondents said in Q3 that they are not planning to increase any capacity in the next six months as high raw material prices, low domestic and export demand, exchange rate appreciation, increasing imports and excess capacities are weighing on their expansion plans. This has also affected the hiring plans for the sector with 70% of respondents saying that they are not likely to hire additional workforce in next three months. This has declined from 85% respondents not in favour of hiring additional workforce in the quarter ending December.