India’s manufacturing sector is set for significant growth, as 87% of participants in a Ficci survey reported stable or increased production levels for the September quarter. This marks an increase from 77% in the previous quarter ending in June. The quarterly survey evaluated the performance and outlook for the period of July to September 2025-26 across eight key sectors, including automotive and auto components, capital goods, chemicals, fertilizers and pharmaceuticals, electronics, white goods and telecom, machine tools, metal and metal products, and textiles and technical textiles. Responses came from both large manufacturing companies and small and medium enterprises (SMEs), representing a total annual turnover exceeding Rs3 lakh crore.
The survey also indicated that average capacity utilization in manufacturing is nearing 75%, suggesting ongoing economic activity in the sector. Furthermore, the investment outlook remains optimistic, with over half of the respondents planning to invest and expand within the next six months. Nonetheless, challenges such as global and geopolitical factors (tariffs, trade restrictions, economic uncertainty), operational issues (labour availability, raw material shortages, regulatory challenges), and others persist. In the second quarter, over 70% of respondents anticipate their exports to remain steady or increase compared to the same period last year, up from around 61% in Q1 FY 2025-26.