An RBI-sponsored ‘Industrial Outlook Survey’ of the manufacturing sector today showed a “marginal increase in optimism” on overall business situation for the January-March quarter of 2015-16 though there was a slight decline in optimism on employment and profit margin fronts.
The 72nd round of Industrial Outlook Survey conducted during October-December 2015 provides qualitative assessment of business situation of companies in the Indian manufacturing sector for third quarter of the fiscal and their expectations for the fourth quarter.
The survey elicited response from 1,337 manufacturing companies, RBI said.
On fourth quarter expectations, the survey said: “While a marginal increase in optimism was observed for production, orderbooks, capacity utilisation and overall business situation, optimism on employment and profit margin reduced marginally.”
It further said assessment of major indicators in third quarter remained broadly unchanged from the previous quarter.
“Moderate increase in optimism is observed in ‘Overall Business Situation’ (in the third quarter). As a result, the business sentiment of the Indian manufacturing sector, as inferred from the Business Expectation Index (BEI), remained range-bound in the assessment quarter,” the survey said.
The outlook on business sentiment (fourth quarter) also remained similar. BEI moved from 113.4 for the previous quarter to 114.2 for January-April of 2015-16.
The survey results are those of the respondents and are not necessarily shared by the Reserve Bank of India, the central bank said.