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The latest edition of the Federation of Indian Chambers of Commerce and Industry (FICCI) Manufacturing survey reflects moderated sentiment for production in Q-1 2026-27 compared to the previous quarter indicating the potential impact of the West Asian crisis. Responses were based on expectations of the manufacturers reflecting the overall positive sentiments and stable domestic fundamentals for manufacturing growth. In comparison to Q4 FY 2025-26, when 93% of respondents reported higher or same production levels, approximately 77% of respondents reported either higher or same production levels in Q1 FY 2026-27. This moderation was also evident in demand, as 77% of respondents reported higher or same orders in Q1 FY 2026 as compared to 89% in the previous quarter. FICCI’s latest Quarterly Survey on Manufacturing (QSM), which is the 70th edition of the survey, assessed the performance and sentiments for Q1 April-June 2026-27 of manufacturers for eight major sectors namely, Automotive & Auto Components, Capital Goods, Chemicals, Fertilizers & Pharmaceuticals, Electronics & Electricals, Machine Tools, Metal & Metal Products, Textiles, Apparels & Technical Textiles and Miscellaneous. Responses have been drawn from manufacturing units from both large and SME segments with a combined annual turnover of over Rs. 4 lakh crores. However, there was no major impact seen on the capacity utilization vis-à-vis the previous quarter. The existing average capacity utilization in manufacturing is close to 72%, which is similar to the capacity utilization in the previous survey. The future investment outlook is steady for the next six months. Challenges faced by respondents in expanding capacities include current geopolitical situation (tariffs, trade restrictions, demand uncertainty), operational issues (labour availability, raw material shortages, increasing logistic costs, regulatory challenges). Powered by Capital Market - Live News
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