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The manufacturing sector is expected to witness subdued investments for a few months more, according to the latest Quarterly Manufacturing Survey by industry body Federation of Indian Chamber of Commerce and Industries (Ficci). The survey, which asked manufacturing firms whether they have investment plans in the next six months, received only 25 per cent affirmative responses.
In terms of investment, the survey noted the subdued mood in the manufacturing sector, which was the case in previous quarters as well. In the first quarter of FY16, almost 75 per cent respondents reported they didn't have any plans for capacity additions for the next six months against 73 per cent in the fourth quarter of FY15 and 74 per cent respondents in the third quarter of FY15. Among the reasons cited are delay in regulatory clearances, poor demand conditions, and high cost of borrowing.
