FICCI survey finds India's manufacturing lost momentum in Q1 FY27
India's manufacturing sector lost some momentum in the first quarter of fiscal 2027, mostly because of ongoing geopolitical tensions in West Asia.
According to a new FICCI survey, only 77% of manufacturers reported steady or rising production, down from 93% last quarter.
Order books also took a hit, hinting at weaker demand this April-June.
Indian manufacturers report export gains
On the bright side, export sentiment actually improved: 74% saw stable or higher exports compared to just 61% last time.
Still, most manufacturers are feeling the pinch from pricier raw materials and energy: 79% said their costs went up.
Capacity use stayed flat at 72%, but fewer companies plan to hire soon (just 35%, down from 41%), as challenges like supply chain issues and labor shortages continue to weigh on growth.