Manufacturing business sentiments remain positive: Survey
FICCI’s latest Quarterly Survey on Manufacturing (QSM), which is the 61st edition of the survey, reveals a sustained and continued period of growth for India’s manufacturing sector in the last two quarters of FY 2024. Compared to the previous quarter, Q3 FY24, when 73% respondents had reported higher production levels, in the current Q4 FY2024, around 87% respondents expect either higher or same level of production. This upbeat assessment of India’s manufacturing is also reflected in higher order books. 85% of the respondents in Q4 FY24 are expecting higher number of orders compared to the previous quarter. Domestic demand conditions show optimism in the current Q4 24.
Exports
In exports, about 31% respondents reported higher exports in Q3 2023-24. Furthermore, over 40% of the respondents expect their exports to be higher in Q4 2023-24 as compared to the previous year’s similar quarters.
Capacity addition & utilisation
The existing average capacity utilisation in manufacturing is around 73%, which reflects sustained economic activity in the sector, which is more or less same as reported in previous surveys.
Interest rate
Average interest rate paid by the manufacturers has been reported to be 9.3%. A little under 45% of the respondents reported that the increase in repo rates in the last few months has led to a slight increase in the lending rate by their banks, thereby increasing their cost of borrowing. Close to 90% of respondents reported sufficient availability of funds from banks for working capital or long-term capital, as per a release.
Source: Exim News Service: New Delhi, Feb. 12