Manufacturing Boom Continues in FY26 Q4: FICCI Flags Resilience Against Cost Surge
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India’s factories are firing on all cylinders heading into FY 2025-26’s final quarter, shrugging off cost escalations with impressive growth projections. The FICCI quarterly survey, now in its 69th iteration, aggregates views from large-scale manufacturers and SMEs totaling over ₹8 lakh crore in turnover.
Key highlights: 93% saw production rise or remain flat, building on Q3’s 91%. Domestic order sentiment is buoyant at 89% expecting no dip. Covering autos, chemicals, electronics, metals, textiles, and beyond, the data signals sector-wide strength.
Global jitters have trimmed capacity use to 72%, down mildly due to tariffs, economic flux, and supply snarls. Add in labor shortages and red tape, and challenges abound—yet specifics shine: textiles at 76.4%, metals 76%, pharma 75%.
Exports tell a success story, climbing to 80% positive reports from 74%. Employment plans are up too, 41% eyeing hires versus 38% prior. This comes as government ramps up PLI schemes and infra spends.
Analysts view this as validation of India’s manufacturing renaissance. To unlock full potential, addressing input costs via subsidies and streamlining logistics is crucial. The sector’s grit bodes well for GDP targets, cementing India’s global supply chain role.
