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'Manufacturing, exports to strengthen in Q4'
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SME Times News Bureau | 22 Mar, 2021
FICCI's latest quarterly survey on manufacturing assessed recovery of
the sector for Q-3 (October-December 2020-21) and pointed that it is
expected to regain the lost momentum in the Q-4.
The percentage
of respondents reporting higher production in the third quarter of
2020-21 had increased vis-a-vis the Q-2 of 2020-21. The proportion of
respondents reporting higher output during October-December 2020 rose to
33 per cent, as compared to 24 per cent in Q-2 of 2020-21. The
percentage of respondents expecting low or same production is 67 per
cent in Q-3 2020-21 which was 74 per cent in Q-2 2020-21.
FICCI's
survey assessed the sentiments for the next quarter (Q-4) for 12 major
sectors namely automotive, capital goods, cement and ceramics,
chemicals, fertilizers and pharmaceuticals, electronics and electricals,
leather and footwear, medical devices, metal & metal products,
paper products, textiles, textile machinery, and miscellaneous.
Responses have been drawn from over 300 manufacturing units from both
large and SME segments with a combined annual turnover of around Rs 5.3
lakh crore.
As per the survey, the overall capacity utilization
in manufacturing has witnessed a rise to 74 per cent as compared to 65
per cent in previous quarter. The future investment outlook, however,
looks slightly better as 30 per cent respondents reported plans for
capacity additions for the next six months as compared to 18 per cent in
the previous quarter.
High raw material prices, high cost of
finance, shortage of skilled labour and working capital, high logistics
cost, low domestic and global demand due to imposition of lockdown
across all countries to contain spread of coronavirus, excess capacities
due to high volume of cheap imports into India, lack of financial
assistance, uncertain demand scenario across globe, complex procedures
for obtaining environmental clearances, high power tariff, are some of
the major constraints which are affecting expansion plans of the
respondents.
The survey indicated that capacity utilisation
witnessed a jump in Q3 for automotive, capital goods, electronics and
electrical, medical devices sectors such hike it remained slow or
subdued in textile and leather sectors.
Besides, 78 per cent of
the respondents had either more or same level of inventory in
October-December, whereas around 79 per cent of the respondents
maintained either more or same level of inventory in July-September 2020
quarter of 2020-21.
The percentage of respondents expecting
increase in exports has increased substantially to 29 per cent when
compared to previous quarters during lockdown period, wherein 24 per
cent respondents were expecting a rise in exports. Also, 34 per cent are
expecting exports to continue to be on the same path as that of same
quarter last year.
The hiring outlook for the sector also seems
to be improving, as 37 per cent against 20 per cent in the previous
quarter are planning to hire additional workforce.
Based on
expectations in different sectors, sectors such as Medical Devices,
Chemicals, Fertilizers and Pharmaceuticals, Textile Machinery,
Electronics and Electricals, Capital Goods and Metal and Metal Products
are likely to register strong growth in Q-3 2020-21, the survey
indicated.
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| Customs Exchange Rates |
| Currency |
Import |
Export |
US Dollar
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84.35
|
82.60 |
UK Pound
|
106.35
|
102.90 |
Euro
|
92.50
|
89.35 |
| Japanese
Yen |
55.05 |
53.40 |
| As on 12 Oct, 2024 |
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