FICCI’s latest quarterly survey on manufacturing indicates improved outlook for the sector in the second quarter of financial year 2016-17 (July-September) buoyed by the improved outlook for exports.
The survey had earlier indicated a slowdown for the first quarter of 2016-17, which seems to be waning. The proportion of respondents expecting higher growth during the July-September quarter has risen to 55 percent as against 53 percent for April-June quarter of fiscal 2016-17, although, it remains much below the 60 percent in January-March quarter of the previous fiscal.
The slight improvement in the outlook for manufacturing production in the second quarter of the current financial year is attributable to various factors, including somewhat better outlook for exports compared to previous quarters, and better outlook on domestic demand front too, noted the Survey.
The survey that gauges the expectations of manufacturers for Q-2 (July-September 2016-17) for 13 major sectors – auto, capital goods, cement and ceramics, chemicals, electronics and electricals, food products, leather and footwear, machine tools, metal and metal products, metal forging, paper products, textiles and technical textiles and textiles machinery – has shown slight improvement in manufacturing sector over the last few quarters due to a number of initiatives taken by Government in the last few months.
Responses have been drawn from 308 manufacturing units from both large and SME segments with a combined annual turnover of over Rs. 4 lakh crore, the FICCI statement issued here said.