Manufacturers had a positive outlook for the sector during the January-March quarter on the back of higher production, industry body FICCI said.
“The percentage of respondents reporting higher production in the fourth quarter has increased significantly vis-a-vis the previous quarter of 2017-18.
“The proportion of respondents reporting higher output growth during Q4 2017-18 has increased significantly to 55% from 47% in Q3,” FICCI said in its latest quarterly survey on manufacturing.
Also, the percentage of respondents reporting low production has come down to 11% in the fourth quarter from 15% in the preceding quarter, it added.
‘More orders expected’
In terms of order book, 51% of the respondents said they were expecting a higher number of orders as against 42% in the previous quarter, which is “a sign of revival,” the industry body said.
The survey assessed the expectations of manufacturers in 12 major sectors, including automotive, capital goods, pharmaceuticals, food products and textiles among others.
Responses had been drawn from more than 300 manufacturing units from large and SME segments with a combined annual turnover of more than ₹3 lakh crore.
The report said high growth was expected in the automotive and capital goods segments in the fourth quarter, while sectors such as cement and ceramics, leather and footwear, chemicals and pharmaceuticals were expected to see moderate growth.
Low growth was expected in textile machinery and textile sectors in the January-March 2018 quarter, it added.
