Manufacturing - #SectorUpdates

According to an industry survey, India’s manufacturing sector is set to sustain its growth momentum for the next 6-9 months. According to the survey, the existing average capacity utilization in manufacturing is over 70%, which reflects sustained economic activity in the sector. The future investment outlook also slightly improved as compared to the previous quarter as close to 40% of respondents reported plans for capacity additions in the next six months by over 15% on average.¬†High raw material prices, increased cost of finance, cumbersome regulations, and clearances, shortage of working capital, high logistics cost due to rising fuel prices and blocked shipping lanes, low domestic and global demand, excess capacities due to a high volume of cheap imports into India, unstable market, and other supply chain disruptions are some of the major constraints affecting expansion plans of the MSMEs in the country.

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