Manufacturing Sector Sees Continued Growth in Q3 and Q4: FICCI Survey

Feb 12, 2024 Mark

New Delhi, India, Feb 12, 2024: FICCI’s latest Quarterly Survey on Manufacturing (QSM) has revealed sustained growth for India’s manufacturing sector in the last two quarters of FY 2024. The survey, now in its 61st edition, indicates a positive outlook with a significant majority of respondents expecting higher production levels and increased order books.

In the current quarter, Q4 FY 2024, approximately 87% of respondents anticipate either higher or the same level of production, compared to 73% in the previous quarter, Q3 FY 24. Moreover, 85% of respondents expect a higher number of orders in Q4, reflecting optimism in domestic demand conditions.

The survey covered sentiments across ten major sectors, drawing responses from over 400 manufacturing units with a combined annual turnover exceeding Rs. 3.4 lakh crores. It highlighted several key trends:

Capacity Addition & Utilization:

  • Average capacity utilization stands at around 73%, indicating sustained economic activity in the sector.
  • Over 50% of respondents plan investments and expansions in the next six months.
  • Challenges include raw material availability and price volatility, global demand uncertainty, skilled labor shortage, market volatility, and high power costs.


  • Around 88% of respondents reported either higher or the same level of inventory in Q3 FY 24, compared to the previous year’s quarter.
  • Approximately 84% expect higher or the same level of inventory in Q4 FY 24.


  • 31% of respondents reported higher exports in Q3 2023-24, with over 40% expecting higher exports in Q4 2023-24 compared to the same period last year.


  • Nearly 40% of respondents plan to hire additional workforce in the next three months.

Interest Rate:

  • The average interest rate paid by manufacturers is 9.3%.
  • Close to 45% of respondents reported a slight increase in lending rates due to recent repo rate hikes.

Sectoral Growth Expectations:

  • Expectations vary across sectors, with electronics & electricals and machine tools showing strong growth prospects.

Production Cost:

  • Production costs have increased, attributed to rising raw material prices, labor costs, freight charges, and borrowing costs.

Workforce Availability:

  • 62% of respondents reported no issues with workforce availability, while 38% cited a lack of skilled workforce.

Overall, the survey underscores the resilience of India’s manufacturing sector amid challenges, with a positive outlook for growth and investment in the coming months.

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