Amidst rising input costs, FICCI’s latest Manufacturing Survey shows a positive growth sentiment for Indian manufacturing in Q-4 of 2025-26. Responses based on expectations of both large and MSME manufacturers, reflect the overall positive sentiments and strong domestic fundamentals for manufacturing growth. The survey continued to reflect sustained growth and increasing optimism for India's manufacturing sector in Q-4. In comparison to Q3 FY 2025-26, when 91% of respondents reported higher or same production levels, approximately 93% of respondents reported either higher or same production levels in Q4 FY 2025-26. This optimism was also evident in domestic demand, as 89% of respondents anticipated higher or same orders in Q4 FY 2026 compared to the previous quarter.

In terms of Capacity Addition & Utilization, the only impact seen was in the capacity utilization which saw a little dip vis-à-vis previous quarter. The existing average capacity utilization in manufacturing is close to 72%, which reflects a little lower utilization vis-à-vis previous survey. However, the future investment outlook is steady for the next six months.

In Q3 2025-26, around 89% of the respondents reported higher or same level of inventory and for Q-4 2025-26, around 86% of the respondents are expecting higher or same level of inventory.

In exports, about 74% of respondents reported higher or same level of exports in Q3 FY 2025-26 and in Q4 2025-26 around 80% of the respondents expect their exports to be higher or same as compared to previous year’s similar quarters.
The survey noted that 41% of the respondents are looking at hiring an additional workforce in the next three months as compared to 38% in the last quarter.

The average interest rate paid by the manufacturers has been reported to be 8.85%. A little over 86% of respondents reported sufficient availability of funds from banks for working capital or long-term capital.

Production costs for manufacturers in this quarter seem to remain on higher side. Nearly 70% of respondents reported an increase in the cost of production as a percentage of sales, as against 57% in the previous quarter, indicating that costs pressures were higher in this quarter.

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