India’s manufacturing sector on the path of improvement in September quarter: survey
New Delhi. The manufacturing scenario for the manufacturing sector may be sluggish, but the sector is on the path of improvement in the July-September quarter. A survey revealed this. According to a recent quarterly survey of manufacturing sector released by industry body FICCI, the percentage of participants who spoke of higher production has improved.This suggests that the manufacturing sector is poised for improvement in the September quarter as compared to a quarter ago. According to the survey, 10 percent of the participants reported overproduction in the June quarter. Their percentage increased to 24 in the September quarter. Along with this, the percentage of participants who spoke about production at the same or lower level has come down from 90 percent to 74 percent during this period.The hiring scenario in the manufacturing sector has improved somewhat during this period, but it still remains sluggish. Eighty percent of the participants in the survey said that they are not going to hire additional people for the next three months.
At the same time, investment bank Barclays raised the growth estimate for the Indian economy for the year 2021-22 to 8.5 percent, from 7 percent earlier. According to Barclays, the domestic economy is normalizing faster than anticipated. Barclays has forecast a 8.5 per cent decline in the second quarter, which is close to the Reserve Bank’s estimates.
Last week, the Reserve Bank had estimated that GDP could fall by 8.6 per cent in the second quarter. At the same time, Barclays has estimated that the domestic economy will see growth from the third quarter. At the same time, the Reserve Bank estimates that the economy will grow from the fourth quarter. According to a survey conducted by Reuters last month among economists, the economy is expected to report a 9% growth in the next financial year after recording a sharp decline in this financial year.
