Breaking News

You are here » Indian-Commodity  :  Top News  :  India's manufacturing sector may witness higher growth in Q2 FY17: FICCI

29-Aug2016

India's manufacturing sector may witness higher growth in Q2 FY17: FICCI

India's apex body of business organisation, Federation of Indian Chambers of Commerce and Industry (FICCI) in its latest quarterly report on, manufacturing outlook for the second quarter has stated that India's manufacturing sector may witness higher growth during the July-September quarter due to improvement in export prospects and domestic demand, even as the hiring outlook remains subdued and the interest rate paid by the manufacturers remained high and sticky.

In the report based on survey drawn on the manufacturing outlook from the 308 manufacturing units from large, small and medium enterprises segments with a combined annual turnover of over Rs 4 lakh crore the respondents expected higher growth during July-September quarter, rising to 55 percent as against 53 percent for April-June quarter 2016-17, although, it remained much below the 60 percent for January-March quarter of the previous fiscal. Further it stated that the slight improvement in the outlook for manufacturing production in second quarter of 2016-17 is attributable to various factors including somewhat better outlook for exports compared to previous quarters, and better outlook on domestic demand front too.

Export outlook for manufacturing in September quarter improved slightly as against the expectations for the first quarter. It anticipated export in the second quarter likely to rise by 5 percentage points to 41 percent as against 36 percent in 2016-17. However, hiring outlook remains subdued in manufacturing in coming months as three quarters of the participants in second quarter of 2016-17 are unlikely to hire additional workforce in next three months and it remained almost similar to that recorded for June quarter that is 76 percent. Moreover, average interest rate paid by the manufacturers still reportedly remains high and sticky. The rate is as high as 15 percent with average interest rate at around 11.5 percent per annum.

The report further said that uncertain economic environment, unfavourable market conditions, competition from imports, delayed clearances, inadequate infrastructure (especially availability of power) and cost escalation are some of the major constraints affecting the expansion plans of the industry.



Related News

View all news

Cotton futures edge higher on MCX

Cotton futures edged higher on MCX amid rising demand from traders and stockists at the spot market. Besides, erratic rains and reports of pest attack from major producing belts also added support on cotton......

Coriander futures trade higher on limited arrivals

Coriander futures traded higher on NCDEX as participants enlarged their holdings amid rising demand at the spot market. Further, limited arrivals from major producing regions also influenced coriander......

Nickel futures decline on subdued demand

Nickel futures declined on MCX as participants cut down their bets amid subdued demand from alloy-makers and other consuming industries at the spot market. The contract for August delivery was trading......

Top News

View all news

Mahindra Finance raises Rs 100 crore via NCDs

Mahindra & Mahindra Financial Services' (Mahindra Finance) board has approved the allotment of Secured Redeemable Non-Convertible Debentures (NCDs) of the face value of Rs 10,00,000 each, at premium,......

SCI delivers 'Nanga Parbat' LPG carrier to its buyer

Shipping Corporation of India (SCI) has given physical delivery of its one LPG carrier 'Nanga Parbat', to its buyer on 'as is where is' basis.The company, had given physical delivery of its one passenger......

Eicher Motors, VECV developing new range of electric vehicles for public transportation

Eicher Motors and VE Commercial Vehicles (VECV), a joint venture of Volvo Group India is developing a new line of products, including a complete range of electric vehicles for public transportation. The......