According to an article published on October 9 in the Economic Times, a recent survey by the Federation of Indian Chambers of Commerce and Industry (FICCI) shows that rising domestic demand and investment sentiment in India are expected to drive strong growth in the manufacturing sector. The survey focused on evaluating the performance of eight key industries: automobiles, capital goods, chemicals, electronics, machine tools, metals, textiles, and others. Of the surveyed companies, 87% reported that their production levels in the latest quarter (July to September 2025) were stable or higher than the previous quarter, which is higher than the 77% from the previous quarter. The report pointed out that India's recent reduction in the Goods and Services Tax (GST) rate has further stimulated domestic demand, with 83% of respondents expecting an increase in orders in the coming months. The survey also showed that the average capacity utilization in India is around 75%, indicating stable economic activity. Investors in India remain optimistic about the future investment environment, with over 50% of manufacturers planning to add new investments or expand capacity within the next six months. The report noted that Indian companies generally believe that business expansion still faces several challenges, including global geopolitical tensions, trade restrictions, rising operational costs, and labor shortages in specific industries. Regarding costs, due to rising prices of raw materials, labor, and logistics, more than 50% of respondents stated that their costs have increased compared to last year. However, the financial condition of Indian manufacturing companies remains strong, with 81% of the surveyed companies stating that they can obtain sufficient bank funding to meet operational and long-term development needs. In terms of exports, more than 70% of manufacturers expect their export volumes to be higher or at least equal to last year's level. In terms of employment, 57% of the surveyed companies plan to expand their workforce in the next quarter. 80% of the companies said that there is no shortage of labor, while about 20% of manufacturers stated that they need more skilled workers and urged the industry and government to strengthen cooperation in training. In summary, all sectors of India's manufacturing are expected to achieve at least moderate growth, with the automotive, electronics, machine tools, and metal industries showing the most optimistic prospects.
Original: www.toutiao.com/article/1845878510701596/
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