Thursday, August 13, 2020
Home Business finance Only 10% Manufacturing Firms Report Production Increase in Q1

Only 10% Manufacturing Firms Report Production Increase in Q1

The nationwide lockdown has brought a severe slowdown in the economy

With the coronavirus pandemic and the resultant nationwide lockdown bringing a severe slowdown in the economy, a survey by FICCI has shown that only 10 per cent of the respondents in the manufacturing sector reported an increase in production in the first quarter of fiscal 2020-21.

“The percentage of respondents reporting higher production in the first quarter of 2020-21 has fallen significantly vis-a-vis the Q4 of 2019-20. The proportion of respondents reporting higher output during April-June 2020 fell to just 10 per cent compared with Q4 of 2019-20 (15 per cent),” said the FICCI’s latest quarterly survey, painting a dismal scenario compared with previous few quarters of 2019.

The survey elicited responses from over 300 manufacturing units in both large and SME segments with a combined annual turnover of over Rs 2.5 lakh crore.

Follow NewsGram on Twitter to stay updated about the World news.

The percentage of respondents expecting low or same production is 90 per cent in Q1 2020-21, which was 85 per cent in Q4 of 2019-20.

Only 10% manufacturing firms report higher output in Q1: Survey
The percentage of respondents expecting low or same production is 90% in Q1. Pixabay

The overall capacity utilisation in manufacturing has witnessed a decline to 61.5 per cent in Q4 2019-20 compared with 76 per cent in Q3 2019-20, as per the survey.

The future investment outlook looks subdued as only 22 per cent respondents reported plans for capacity additions in the next six months compared with 28 per cent in the previous quarter.

High raw material prices, high cost of finance, uncertainty in demand, shortage of skilled labour and working capital, high logistics cost, low domestic and global demand due to imposition of lockdown to contain spread of coronavirus etc are some of the major constraints affecting the expansion plans of the respondents.

The average capacity utilisation for Q4 2019-20 has decreased for all sectors, except medical devices as well as metals and metal products, wherein average capacity utilisation has remained the same in Q4 of 2019-20 compared to Q3 2019-20.

Also Read: Homicides Increases up to 14% in San Francisco Bay Area: Report

Only 10% manufacturing firms report higher output in Q1: Survey
Footwear firms are looking at alternative sources of inputs and raw material. Pixabay

Further, the FICCI survey also showed that in certain areas like automotive, textiles machinery and leather and footwear firms are looking at alternative sources of inputs and raw material.

In terms of back-to-business status, the survey noted that on an average, firms are operating (depending on sectors) between 28 to 63 per cent of their capacities with a workforce deployment ranging from 33 to 57 per cent.

This assessment is also reflective in order books as 85 per cent of the respondents in April-June 2020-21 expected lesser orders as against 54 per cent in January-March 2019. (IANS)



Most Popular

People Move To Reading And Writing During Lockdown

With a deeply-engaged community of close to 3 million users in India, who spend more than 37 minutes daily reading, writing, and engaging on...

BlareMob – A New Music Sensation

Influenced by the music scene in international circuits like Miami, Ibiza, and Barcelona, Delhi based group, BlareMob, launched their latest offering that has six...

An Unique Experience Of Diverse Asia

A kaleidoscopic journey across Bali, Hong Kong, Kyrgyzstan, Myanmar, Thailand, and Vietnam captures the diverse landscapes, textures, and people of Asia. The exhibit is...

Twitter Tests New Feature for Automatic Translation of Tweets

Twitter has kicked off a test with a small group of users across iOS and Android in Brazil that automatically translates tweets that are...

Facebook Removes More Adult, Violent Content on Instagram

Facebook has removed more pieces of content related to adult nudity and sexual activity along with violent and graphic content on Instagram in the...

TikTok Secretly Collects Data in Violation of Google Policies: Report

TikTok secretly collected device data for months via its Android app using a technique that Google prohibits developers from using without consent of users,...

Here’s How You Can Avoid Smudging of Makeup Under a Mask

With the safety at the top of your mind hygiene rituals are replacing beauty routines, and wearing a face mask has become the new...

Here are Some Vaastu Tips to Help You Gain Good Health

By Puja Gupta A few changes in the Vaastu of your house can help you gain good health, even at a time when you might...

Recent Comments