The Reserve Bank of India (RBI) released the results of 106th round of its quarterly industrial outlook survey (IOS). The survey encapsulates qualitative assessment of the business climate by Indian manufacturing companies for Q1:2024-25 and their expectations for Q2:2024-25 as well as outlook on select parameters for the subsequent two quarters. In all, 1,351 companies responded in this round of the survey, which was conducted during April-June 2024.
RBI noted that manufacturers' assessment of growth in demand conditions moderated from the previous quarter as reflected in their gauge of production, order books, capacity utilisation, employment and overall business situation, but remained positive. Respondents reported some easing in pressures from cost of finance, while pressures on account of input costs and salary outgo were assessed to have gone up during Q1:2024-25.
Manufacturer's assessment of growth in selling prices remained around that assessed in the previous survey; profit margins were reported to deteriorate. Overall, business sentiment in the Indian manufacturing sector moderated, as reflected in the business assessment index (BAI) moving to 110.8 in Q1:2024-25from 114.2 in the previous quarter.
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