Affected by the epidemic, Indian manufacturing is in a downturn. The Federation of Indian Chambers of Commerce and Industry (Ficci) recently released a survey report. The results of a questionnaire survey of more than 300 large, medium and small manufacturing companies across India showed that although many parts of the country have already lifted the blockade , In terms of the factory’s continuous production and order status, the automotive industry has suffered the most. In addition, the leather and footwear, electronics, electrical and textile machinery industries are also in a downturn.
The agency also evaluates the manufacturing production status of 12 categories including automobiles, cement and ceramics, chemicals, fertilizers and pharmaceuticals, electronics and electrical, leather and footwear, medical equipment, and textiles. The results showed that the overall capacity utilization rate of the manufacturing industry dropped to 61.5% from January to March this year. Ninety percent of companies expect production in the second quarter will not increase.
Respondents believe that in the short term,Indian manufacturing is in a downturn and the prospects are bleak. Only 22% of the respondents plan to increase investment and expand production capacity in the next six months. 85% of respondents said that they are unlikely to hire more labor in the next three months.
Respondents said that export prospects are sluggish. Only 8% of respondents expect their exports to increase in the second quarter of this year.
Affected by the epidemic, many industries are also plagued by labor shortages. The textile and textile machinery industries can only recruit one-third of workers, and only about 35% of workers in automobiles, leather and footwear come to work in factories. These industries are all facing serious labor shortages.