Industry

‘Manufacturing companies expect stable growth’

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Majority of the companies in the manufacturing sector expect growth to be stable over the next 12 months, according to the Indian Manufacturing Barometer 2014 survey by the Federation of Indian Chambers of Commerce and Industry (FICCI) and PwC.

According to survey, 55 per cent of the respondents expect to make major investments over the next 12 months, while 49 per cent plan to add capacity.

Research and development, new products or services introduction and facilities are the three priority areas of investment for over 45 per cent of these respondents.

The companies, which participated in the survey, do not expect any decline in their own business revenues or their industry’s revenue in this period. However, in the last year’s survey, six per cent had expected their own business revenues to decline, while 20 per cent respondents had expected their industry’s revenue to decline.

About 94 per cent of the surveyed companies describe themselves as ‘somewhat or very optimistic’ about the Indian economy with high expectations from the government.

Indian manufacturers also expect the government to simplify export import (Exim) policies and related documentation, rationalise the tax structure and implement the Goods and Services Tax (GST). Modification of land acquisition rules, speedier clearances and licensing, and amendments to labour laws are factors they believe will facilitate investments, the survey said.

Bimal Tanna, Leader, Industrial Manufacturing at PwC India, said, “With rising costs in other global manufacturing hubs such as China there is perhaps an unparalleled opportunity for India to step into the breach and capture a significant share of the global manufacturing pie. Yet, the road ahead is not without challenges with several infrastructural and regulatory bottlenecks.”

Growth in the manufacturing sector had fallen to a negative 0.7 per cent in 2013-14, significantly below its five-year average of 5.6 per cent. The share of the sector, in GDP, had declined to 14.9 % in 2013-14 from 15.8 per cent in 2012-13.

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Printable version | Jan 18, 2020 3:40:12 PM | https://www.thehindu.com/business/Industry/manufacturing-companies-expect-stable-growth/article6689368.ece

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