FICCI

India’s manufacturing sector showed robust momentum in the third quarter as the Ficci Manufacturing Index climbed to an all-time high, reflecting improving business conditions and growing confidence among producers. The surge was driven by strong order books, capacity utilization and sustained domestic demand, even as global uncertainties persist. Industry leaders and economists see the index reading as evidence of a broad-based recovery in manufacturing activity, supported by government-led infrastructure spending, supply chain stabilization and steady investment flows into the sector.

India’s economic outlook remains robust as the Federation of Indian Chambers of Commerce and Industry (FICCI) forecasts GDP growth of more than 7% for the current fiscal year. The projection reflects strong domestic consumption, resilient investment activity, and sustained government spending on infrastructure. Despite global uncertainties, India continues to demonstrate stable macroeconomic fundamentals, supported by moderating inflation and improved manufacturing sentiment.

India's manufacturing sector is poised for robust growth, according to the latest Quarterly Survey on Manufacturing (QSM) conducted by the Federation of Indian Chambers of Commerce and Industry (FICCI). The survey indicates that 87% of respondents reported higher or unchanged production levels in the July-September 2025 quarter, marking one of the highest percentages in recent quarters. The optimism is driven by strong domestic demand, with 83% of manufacturers expecting increased orders. However, challenges such as elevated input costs and geopolitical uncertainties persist.