Manufacturing sector grew in Q3 expects to draw larger investment in union budget: FICCI

New Delhi, Jan 31 (KNN) As per Federation of Indian Chambers of Commerce & Industry’s (FICCI) latest quarterly survey on manufacturing there has been a progress in manufacturing in Q3 (October-December 2021-22) and the sector anticipates enhance growth and investments in the union budget, as per the findings of their latest quarterly survey on manufacturing.

The percentage of respondents reporting higher production in third quarter of 2021-22 (October-December 2021-22) was above sixty percent mark- around 63 per cent. This was significantly higher or almost double than the similar percentage of last year’s Q-3 quarter (around 33%), noted FICCI.

The survey comprises of major sectors such as automotive, capital goods, cement, chemicals, fertilizers and pharmaceuticals, electronics & electrical, medical devices, metal & metal products, paper products, textiles, textiles machinery and other sectors.

Respondents are from over 300 manufacturing units from both large and SME segments with a combined annual turnover of over 2.7 lakh crore.

For exports, 50 per cent of the participants are expecting a rise in their exports for Q-3 2021-22 vis à vis same quarter (Q-3 2020-21) last year and based on expectations in different sectors, half of the sectors are likely to register strong growth in Q-3 2021-22 except few.

In comparison with the previous survey, the cost of production as a percentage of sales for manufacturers in the survey has risen for 81 per cent respondents in the latest survey which is considerably higher for both the quarters than that reported in Q4 2020- 21, where 72 per cent respondents recorded increase in their production costs.

This is pointing towards an increasing trend and impacting competitiveness in the short term, said FICCI.