Ficci Manufacturing Index Soars to New Heights in Q3

The Ficci Manufacturing Index rose to an all-time high in Q3 2023, with 91% of firms reporting robust production levels. Despite constant costs, optimism prevails due to increased domestic demand and improved export levels, supported by recent GST reductions and sustained economic activity.

The Ficci Manufacturing Index reached unprecedented levels in the third quarter of 2023, with a remarkable 91% of firms reporting steady or increased production. This is a significant increase from the 87% reported in the previous quarter, even as production costs remain elevated.

The 68th Quarterly Survey on Manufacturing assessed various sectors, including auto components, chemicals, and textiles, and revealed challenges such as rising raw material costs and global uncertainties. Over 70% of respondents reported stable or increased exports in Q3.

The survey indicates sustained optimism in India's manufacturing sector, driven by factors like domestic demand, favorable investment outlook, and sufficient funding from banks. Average capacity utilization nears 75%, signaling robust economic activity.

(With inputs from agencies.)