FICCI Survey Reports Record Manufacturing Output and Optimism in Q3 FY26

The Federation of Indian Chambers of Commerce and Industry's (FICCI) 68th Quarterly Survey on Manufacturing reports that 91% of Indian manufacturing firms experienced stable or increased production in Q3 FY26, up from 87% in Q2. Strong domestic demand, supported by recent GST rate cuts, and rising exports, particularly in textiles and electricals, contributed to optimism. Average capacity utilisation stood near 75%. However, 57% of respondents noted higher production costs due to raw materials, logistics, and currency factors. Challenges include geopolitical uncertainties, labour shortages, and regulatory issues, while 38% plan to hire more workers in the coming months.