The Federation of Indian Chambers of Commerce and Industry (FICCI) in its latest quarterly survey on manufacturing for Q4 FY24 pegged the future investment outlook as stable, but industry respondents noted concerns over availability of raw materials and their rising prices, uncertainty in global demand, There is marked shortage of skilled labour. Market volatility, increased power costs, unutilized capacities and high bank interest rates are some of the major hurdles going forward.

The survey found that 85 per cent of the respondents expect to get a higher number of orders in the current fourth quarter of the financial year 2023-24 compared to 73 per cent in the previous quarter. The hiring landscape is expected to remain stable, with about 40 percent of respondents planning to hire additional workforce in the next three months.

The FICCI survey has suggested extending the FAME subsidy for electric vehicles for at least five years until the ecosystem and supply chain matures. “The current digital process for FAME and processing of FAME subsidy claims takes time, often lasting five to six months. Streamlining this process will benefit original equipment manufacturers (OEMs), “the survey said.

The survey took responses from over 400 manufacturing units from both large and small and medium enterprise (SME) sectors with a combined annual turnover of over Rs 3.4 trillion.

Sectors Average Capacity Utilization (%)
Capital goods and construction equipment 77
Chemicals, Fertilizers and Pharmaceuticals 73
Electronics and Electricals 65
FMCG 70
machine tools 66
Metals and Metal Products 75
miscellaneous 74
paper and paper products 90
Textiles, apparel and technical textiles 75
Automotive & Components 75
Grand total 73
Growth expectations for the fourth quarter of fiscal year 2023-24*
Automotive and Auto Components medium
Capital goods and construction equipment medium
Chemicals, Fertilizers and Pharmaceuticals medium
Electronics & Electricals strong
FMCG medium
machine tools strong
Metals and Metal Products medium
miscellaneous medium
paper and paper products medium
Textiles, apparel and technical textiles medium


very strong >20%; Strong 10-20%; medium 5-10%; low <5%; Source: FICCI Survey

first published: February 12 2024 | 8:31 pm First


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