42% of manufacturers plan to bet more money: FICCI Survey

India’s manufacturing sector continues to show steady growth, with stable investment plans and strong production levels, according to the latest Quarterly Survey on Manufacturing (QSM) by FICCI.

The survey for Q3 2024-25 indicates that 83% of manufacturers reported either higher or consistent production levels compared to last year’s 73%, reflecting optimism in the sector. Additionally, 83% of respondents expect a rise in order volumes for the quarter, reinforcing positive demand conditions.

The investment outlook remains stable, with 42% of respondents planning investments and expansions in the next six months—unchanged from the last survey. Capacity utilisation in manufacturing stands at around 75%, indicating steady economic activity.


Despite this, challenges persist. Rising raw material costs, high interest rates, and weak domestic and export demand remain key concerns. Additionally, businesses face difficulties in accessing advanced machinery, securing land, and dealing with regulatory hurdles, all of which are slowing expansion efforts.

Export performance has improved, with 70% of manufacturers expecting higher exports in Q3 2024-25 compared to last year. In Q2, 65% of respondents had reported export growth.

On the employment front, 35% of manufacturers plan to hire more workers in the next three months. While 80% report no labour shortages, 20% express concerns over the lack of skilled workers, highlighting the need for skill development initiatives.

The average interest rate for manufacturers stands at 9.5%, though over 80% of respondents confirm adequate access to bank funds for working capital and long-term investments.

While the sector remains on a growth path, challenges such as high costs and regulatory complexities could impact future expansion. Industry leaders hope that measures announced in the recent budget will help address these concerns and sustain momentum in the months ahead.