Skip to main content

Manufacturing outlook positive for January-March quarter: FICCI

Image
By
Manufacturing outlook positive for January-March quarter: FICCI
Manufacturers in the country have a positive outlook for the sector in the January-March quarter on the back of higher production, a report by industry body FICCI today said.
"the percentage of respondents reporting higher production in fourth quarter has increased significantly vis-à-vis previous quarter of 2017-18. The proportion of respondents reporting higher output growth during the Q4 2017-18 has increased significantly to 55 per cent from 47 per cent in Q3," FICCI said in its latest quarterly survey on manufacturing.
Also, the percentage of respondents reporting low production has come down to 11 per cent in the fourth quarter from 15 per cent in the preceding quarter, it added.In terms of order books, 51 per cent of the respondents said they are expecting higher number of orders as against 42 per cent in the previous quarter, which is "a sign of revival", the industry body said.
The survey assessed the expectations of manufacturers in 12 major sectors including automotive, capital goods, pharmaceuticals, food products and textiles among others. Responses have been drawn from over 300 manufacturing units from both large and SME segments with a combined annual turnover of over Rs 3 lakh crore.
The report said high growth is expected in the automotive and capital goods segments in the fourth quarter, while segments like cement and ceramics, leather and footwear, chemicals and pharmaceuticals are expected to see moderate growth.Low growth is expected in textile machinery and textiles sector in the January-March 2018 quarter, it added.
"The cost of production as a percentage of sales for manufacturers in the survey has risen significantly for 62 per cent respondents in Q3 2017-18. This is primarily due to increase in cost of raw materials, increased wages, power cost and higher GST rates on certain products," the report said.
The Business Standard, New Delhi, 12th March 2018

Comments

Post a Comment

Popular posts from this blog

RBI minutes show MPC members flagged upside risks to inflation

By
RBI minutes show MPC members flagged upside risks to inflation Concerns about economic growth and easing inflation prompted five of the six monetary policy committee (MPC) members to call for a cut in the repo rate, but most warned that prices could start accelerating, show the minutes of the panel’s last meeting, released on Wednesday. The comments reflected a tone of caution and flagged upside risks to inflation from farm loan waivers, rise in food prices, especially vegetables, price revisions withheld ahead of the goods and services tax, implementation of house rent allowance under the 7th pay commission and fading of favourable base effect, among others. On 2 August, the panel chose to cut the repurchase rate—the rate at which the central bank infuses liquidity in the banking system—by 25 basis points to 6%. One basis point is one-hundredth of a percentage point. Pami Dua, professor at the Delhi School of Economics, wrote that her analysis showed “a fading economic growth outlook, as …
Post a Comment
Read more

Shrinking footprints of foreign banks in India

By
Shrinking footprints of foreign banks in India Foreign banks are increasingly shrinking their presence in India and are also becoming more conservative than private and public sector counterparts. While many of them have sold some of their businesses in India as part of their global strategy, some are trying to keep their core expertise intact. Others are branching out to newer areas to continue business momentum.For example, HSBC and Barclays Bank in India have got out of the retail business, whereas corporate-focused Standard Chartered Bank is now trying to increase its focus on retail “Building a retail franchise is a huge exercise and takes a long time. You cannot afford to lose it,” said Shashank Joshi, Bank of Tokyo-Mitsubishi UFJ’s India head.According to the Reserve Bank of India (RBI) data, foreign banks’ combined loan book shrunk nearly 10 per cent from Rs 3.78 trillion in fiscal 2015-16 to Rs 3.42 trillion last financial year. The banking industry, which includes foreign banks…
Post a Comment
Read more

Differential Tax Levy under GST: Food Firms May De-Register Trademarks

By
Differential Tax Levy under GST:Food Firms May De-Register Trademarks The government’s decision to charge an enhanced tax rate on trademark food brands is leading several rice, wheat and cereal manufacturers to consider de-registering their product trademarks. Irked by the June 28 central government notification fixing a 5 per cent goods and services tax (GST) rate on food items packaged in unit containers and bearing registered brand names, the industry has made several representations to the government to reconsider the differential tax levy, which these players say is creating an unlevel playing field within these highly-competitive and low-margin industries. Sources say that the move has affected the packaged rice industry the hardest and allowed the un-registered market leaders, India Gate and Daawat, to gain advantage as compared to other registered brands such as Kohinoor and Lal Qilla. Smaller players are even more worried with this enhanced rate of tax (against the otherwise …
Post a Comment
Read more