India’s Manufacturing Sector Analyzed: A Positive Outlook

FICCI’s latest survey shows India’s manufacturing industry is doing really well and businesses are feeling confident. The survey, done by the Federation of Indian Chambers of Commerce & Industry (FICCI), is tracking how manufacturers are doing. For the third quarter of the current year (2025-26), the results show a new high – 91% of manufacturers say their production is either the same or higher than before. This is a big jump from last quarter when it was 87%.

Key Points

• Strong growth: Manufacturing sector confidence remains persistently high.
• Increased Production: 91% report higher or same production levels.
• Domestic Demand: 86% anticipate increased orders post-GST cuts.
• Capacity Utilization: Near 75% indicates robust economic activity.
• Investment Steady: Future investments and expansions are projected strongly.
• Export Growth: >70% anticipate higher exports compared to prior years.

This good feeling is also because of strong sales. 86% of companies think they’ll get more orders for their products. This is partly thanks to changes in taxes called GST, which make things cheaper for businesses.

Manufacturers are using almost all of their factories – about 75% of their capacity is being used. Companies are also planning to invest more money in expanding their businesses over the next six months. They’re holding onto more of their products – around 90% had plenty of stock in the last quarter and expect to keep it up in the coming one.

India is also selling more of its goods. 69% of manufacturers reported selling more goods in the last quarter, and more than 70% expect to keep selling more than last year at this time.

However, it’s still costing manufacturers more money to make things. Nearly 60% of companies say their costs have gone up as a percentage of what they sell. This means the price of materials and labor is going up, and businesses are working to find ways to manage these costs.

Overall, the FICCI survey paints a picture of a manufacturing sector that’s growing, confident, and ready for continued success in India.

“Investing in manufacturing today represents a strategic commitment to India’s future economic prosperity.”