FICCI Survey On India's Manufacturing Sector Sentiments In Last Two Quarters Of FY24: Here Are The Key Findings

The latest quarterly survey conducted by the Federation of Indian Chambers of Commerce & Industry (FICCI) on manufacturing for the fourth quarter of FY24 has shed light on the prevailing challenges and future outlook of the sector.

While the survey projects a steady investment outlook, industry respondents have raised concerns regarding various constraints affecting growth prospects.

Key findings from the survey reveal that industry stakeholders have identified several impediments, including the availability and escalating prices of raw materials, uncertainty in global demand, shortage of skilled labor, market volatility, increased power costs, unutilized capacities, and high bank interest rates.

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Despite these obstacles, the survey indicates a positive trend in terms of order expectations, with 85 per cent of respondents anticipating a higher number of orders in the current fourth quarter, compared to 73 per cent in the previous quarter.

Additionally, the hiring outlook remains stable, with approximately 40 per cent of respondents planning to recruit additional workforce in the next three months.

One notable recommendation stemming from the survey is the call for an extension of the FAME subsidy for Electric Vehicles (EVs) for at least five years.

The survey underscores the need for streamlining the digital process for FAME subsidy claims, which currently takes between five to six months.

Furthermore, the survey drew responses from over 400 manufacturing units across large and small and medium enterprise (SME) segments, collectively representing an annual turnover of over Rs 3.4 trillion.

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