New Delhi : These days there has been a decline in India's manufacturing sector, which has become a matter of concern. Recently, the country's central bank Reserve Bank of India has revealed this in a survey. According to this survey, it has been found that there has been a decline in production and demand in many sectors, due to which the economic growth of the country is also likely to slow down. This will not only have a direct impact on business but it can also impact employment opportunities.
The central bank Reserve Bank of India has recently conducted a survey, which includes data from 1300 manufacturing companies. According to this survey it has been found that the financial year
There has been a decline in the growth of these companies in the first and second quarters of 2024-25. What this directly means is that the production and sales of companies have decreased compared to before. Besides, the Manufacturing PMI, which assesses the activities of this sector, also seems to be gradually decreasing. The positive situation in the manufacturing sector is decreasing.
Expectation of increase in production capacity
According to the RBI survey, the difference between positive and negative effects in the production of companies, i.e. the net response, has decreased by 27.9 percent in the first quarter of the year 2024-25. Moreover, this figure has also reduced to 22.9 percent in the second quarter. In the fourth quarter of the last financial year, this difference was 34.4 percent. Which clearly shows that there has been a decline in the production of companies. The biggest reason for concern is that companies have admitted that there has been a significant reduction in the expectations of increase in production capacity in the third and fourth quarters.
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input cost pressure
RBI's survey report states that the pressure of raw material prices, financing expenses and salary payments has now reduced. Due to which the sales price and profit expectations of the companies have decreased slightly. Manufacturers included in this survey of the Reserve Bank have expressed better expectations regarding production, orders, employment, capacity utilization and overall business situation for the fourth quarter of the year 2024-25 and the first quarter of 2025-26. However, the pressure of input costs on this sector will remain the same as before.
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