It has been revealed by the Federation of Indian Chambers of Commerce and Industry’s (FICCI) latest quarterly survey on the manufacturing sector that after undergoing a resurgence in the first three quarters of 2021-22, the rate of growth resumed in the next quarters of Q4 January-March (2021-22) and Q1 April-June (2022-23) and there seems to be an improvement in hiring/employment perspective after an extended gap. Hence, the survey said that 54.8 percent of the respondents reported that there has been a higher production level in Q1 with norm anticipation of an increase in the production by over 10 percent. There is a slight hike in the percentage of respondents that have experienced a higher growth last year in Q1.
The FICCI survey also observed that there is a definite improvement in the employment development of the sector as compared to the prior quarter Q3 of 2021-22. In this sector, only 25% of the respondents were looking for employment in the next few months. This percentage has significantly improved to 53% of the respondents in Q1, who are now looking at hiring an extra force in the next three months. According to ICCI’s latest survey estimation of the manufactured main sectors such as fertilizers and pharmaceuticals, machine tools, automotive, paper products, toys, capital goods, cement, chemicals, footwear, metal and metal products, paper products, textiles, tires, and miscellaneous items. The responses have been recorded from over 300 manufacturers and units (Both large and SME segments) with annual revenue of over 3 lac crores.
The Global crisis caused due to the ongoing Russia-Ukraine war which has deeply impacted the economy of every country. Along with that, Covid has also been a big factor in making a wrong mark on the major world economies including India. The increased cost of finance, cumbersome regulations, High raw material prices, and clearances, shortage of skilled labor, excess capacities due to the high volume of cheap imports into India, shortage of working capital, high logistics cost due to rising fuel prices, blocked shipping lanes, high power tariff, low domestic and global demand, unstable market, highly volatile prices of certain metals, and other disruptions of the supply chain are some of the primary limitations that are affecting proliferation plans of the respondents.