Kolkata, New Delhi, INDIA. New York, USA.
Business To Business, New Delhi, 30th June, 2026: India's manufacturing growth is expected to moderate in the first quarter of the current financial year compared with the preceding quarter due to subdued business sentiment arising from the West Asia crisis, according to a survey released on Tuesday by Federation of Indian Chambers of Commerce and Industry.
The FICCI Manufacturing Survey indicated a cautious outlook for production during the quarter ended June (Q1 FY2026-27), suggesting that geopolitical developments in West Asia have weighed on business confidence.
According to the industry body, the survey reflects manufacturers' expectations regarding production levels and captures the prevailing sentiment across the sector.
Despite the anticipated moderation, the survey noted that the overall outlook for the manufacturing sector remains positive, supported by stable domestic economic fundamentals.
FICCI said the responses indicate that while external uncertainties may temporarily affect production growth, manufacturers continue to remain optimistic about the sector's prospects, underpinned by resilient domestic demand and macroeconomic stability.