India’s Manufacturing Sector To Witness Moderate Growth: FICCI

Ever since Modi government has come to power, India’s stupendous growth across various industry sectors has become quite a norm. While growth rates of certain industry sectors grew by a large number, the latest FICCI report suggests that the ongoing quarter wouldn’t prove to be much beneficial for the manufacturing sector. As per the Federation of Indian Chambers of Commerce and Industry (FICCI) report, India’s manufacturing sector is likely to witness moderate growth in the October-December quarter of FY2014-15.

This report titled, FICCI Manufacturing Survey for Q3 of 2014-15, reveals that industrial production grew by 2.5% in September on account of better manufacturing output, which grew by 2.5% in September against 1.4% in the same month last year. "The outlook on the basis of FICCI Manufacturing Survey for Q3 of 2014-15 is less optimistic than Q2 of 2014-15 for the manufacturing sector as the proportion of respondents expecting higher production vis-a-vis last year has fallen to 52 per cent in Q3 from 62 per cent in Q2", FICCI said.

“Growth is likely to be more broad based during the third quarter as most of the sectors are expecting improvement in production,” it added.

For this survey, FICCI collected responses from 392 manufacturing units (with a combined turnover of over Rs lakhs) across thirteen major sectors, namely: textiles, capital goods, metals, chemicals, cement and ceramics, electronics, auto components, leather and footwear, machine tools, food and fast-moving consumer goods (FMCG), tyre, paper and textiles machinery.