The outlook for the manufacturing sector is moderate in the first quarter of 2019-20 as the percentage of respondents reporting higher production during the quarter has fallen compared with that of the fourth quarter of 2018-19, according to FICCI’s quarterly survey.
The FICCI Quarterly Survey on Indian Manufacturing Sector mentioned that overall sentiments remain subdued as the proportion of respondents reporting higher output growth during the April-June 2019 has fallen to 41 per cent from 54 per cent in Q4 of 2018-19.
The survey assessed the sentiments of manufacturers in twelve major sectors, including automotive, capital goods, cement and ceramics and chemicals.
It added that the percentage of respondents expecting low or same production is 59 per cent (46 per cent).
Constraints in expansion
The survey said that due to high raw material prices, high cost of finance, uncertainty in demand, shortage of skilled labour, need for technology upgradation are some of the major issues affecting the expansion plans of the respondents.
In most of the sectors covered in the survey, the average capacity utilisation has either decreased or remained almost the same in Q1 of 2019-20 compared with that of the preceding period.
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