New Delhi: With growth expected to continue for the Indian manufacturing sector in Jan-March Q-4 2022-23, there are signs that cost pressure witnessed in the last many months seems to be softening a bit for the sector, notes latest FICCI Manufacturing Survey.

FICCI’s latest quarterly survey on manufacturing reveals that after experiencing revival of the Indian economy in the FY 2021-22, momentum of growth has continued for the subsequent quarters of FY 2022-23 with some temporary effect of global slowdown on Indian manufacturing.

In the Q3 Oct-Dec FY2022-23, 58 per cent of the respondents reported higher production levels. Growth outlook continues, though lower sequentially. Further, around 50 per cent of the respondents expect a higher level of production in Q4 Jan-Mar 2022-23 with an average increase in production in double digits.

This assessment is also reflective in order books as 52 per cent of the respondents in Q-3 Oct-Dec 2022-23 have had a higher number of orders and demand conditions continue to be optimistic in Q-4 too. There seems to be some softening of cost pressures on manufacturers in the Q-4 note FICCI survey.

The cost of production as a percentage of sales for manufacturers in the survey has risen for 73 per cent respondents, which is lower than 94 per cent as reported in the previous survey. Nonetheless, high raw material prices especially that of steel, increased transportation, logistics and freight cost, and rise in the prices of crude oil and fuel have been the main contributors to increasing cost of production. /BI/