FICCI's Manufacturing Index reaches all-time high in Q3 FY26
- IBEF
- January 21, 2026
The manufacturing industry in India continued to perform well in the third quarter of FY26, with the Federation of Indian Chambers of Commerce & Industry (FICCI) Manufacturing Index touching an all-time high, driven by positive business sentiment and performance. As per the FICCI survey, 91% of the respondents indicated an increase in production or stable production levels compared to the previous quarter, up from 87%, indicating resilience in industrial performance. The domestic market also performed well, with 86% of the respondents indicating equal or higher orders, driven in part by recent GST rate cuts, which have improved the cost competitiveness of many manufacturers. Capacity utilization in the manufacturing industry was around 75%, supporting investment interest and plans over the next six months despite some operational difficulties.
However, the survey also pointed out some challenges that might affect the growth path. Geopolitical issues, tariffs, and trade barriers were identified as major external factors that might affect capacity expansion and supply chain management. Other factors that might affect capacity expansion and supply chain management include operational constraints, such as labour, raw materials, and regulatory policies. In the export segment, around 70% of the companies are of the view that exports will remain stable or increase from the last year, which reflects a degree of optimism in the global market despite trade tensions. The growth expectations in the sector are positive, with electronics & electricals leading the way, followed by moderate growth in capital goods and textiles.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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