The investment outlook for manufacturing also looks stable with 42 per cent of respondents indicating plans for investments and expansions in the next six months, which is same as in the last survey, FICCI said in a press statement.
Domestic demand conditions show optimism in Q3 FY25, however going forward demand could be an issue. Eighty-three per cent of the respondents are expecting a higher number of orders in Q3 FY25 compared to the previous quarter.
India’s manufacturing sector has seen sustained growth in Q3 FY25, with 83 per cent of respondents reporting higher or stable production levels, per FICCI’s QSM.
Forty-two per cent plan investments in the next six months.
Seventy-five per cent expect stable or increased inventory.
The textiles, apparels and technical textiles sector reported 74 per cent capacity utilisation.
The textiles, apparels and technical textiles sector reported an average capacity utilisation of 74 per cent. This figure is slightly below the overall average capacity utilisation of approximately 75 per cent across industries. The sector’s utilisation rate indicates steady operational levels, reflecting demand trends and production efficiencies within the textile and apparel industry.
In Q3 FY25, over 75 per cent of respondents expect inventory levels to remain the same or increase. In exports, 65 per cent of respondents reported higher exports in Q2 FY25, while more than 70 per cent anticipate higher exports in Q3 FY25 compared to the previous year’s similar quarters. Regarding hiring, 35 per cent of respondents plan to expand their workforce in the next three months. The average interest rate paid by manufacturers stands at 9.5 per cent, with over 80 per cent of respondents indicating sufficient access to bank funds for working capital or long-term capital.
FICCI’s 64th edition of the survey, assessed the performance of manufacturers for Q3 (October-December) 2024-25 for eight major sectors namely, automotive and auto components, capital goods, chemicals, fertilisers and pharmaceuticals, electronics & electricals, machine tools, metal and metal products, textiles, apparels and technical textiles, and miscellaneous. Responses have been drawn from manufacturing units from both large and small and medium enterprises (SME) segments with a combined annual turnover of over Rs 4.7 lakh crore.
Fibre2Fashion News Desk (SG)
