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No major investments for India's manufacturing sector: survey

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July 29
8:06 AM 2013

A recently-released survey conducted by Ficci and PricewaterhouseCoopers (PwC) indicated that India's manufacturing sector is holding off on new investments. The India Manufacturing Barometer survey revealed that half of the country's manufacturing companies do not intend to undertake major investments this financial year. Senior execs from various sectors in the manufacturing industry participated in the survey. Weakened economic growth and a slowdown in production were two of the reasons cited for the companies' cautious outlook.

Commenting on the results, PwC India Leader Industrial Products Bimal Tanna said, "In an environment of sluggish economic growth, it is not surprising that the mood exhibited by companies is cautious." The results, however, are not all gloomy. Companies are still confident about improving their profits over the course of the year. They are also using this time to realign their business models. The companies who were surveyed also said that increased interest rates, slowing of domestic demand, pressures for wage increase, lack of profitability, and more foreign competition are among the barriers to growth. 

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