FICCI’s Q1 FY 2026-27 survey shows 77 per cent of manufacturers expecting higher or unchanged production, down from 93 per cent in Q4.
Orders also eased, but exports improved, with 74 per cent reporting higher or stable shipments versus similar quarters last year.
Textiles, apparel, and technical textiles were among eight sectors covered.
Export sentiment improved, with around 74 per cent of respondents reporting higher or unchanged exports compared with similar quarters of the previous year, against about 61 per cent in Q4 FY 2025-26.
The 70th edition of the survey covered eight major sectors, including Textiles, Apparels and Technical Textiles, and drew responses from both large and SME manufacturing units.
The moderation in production sentiment indicated the potential impact of the West Asian crisis, while manufacturers’ responses still reflected overall positive sentiment and stable domestic fundamentals for manufacturing growth, as shared by FICCI in a press release.
Capacity utilisation remained broadly steady, with average manufacturing capacity utilisation at close to 72 per cent, similar to the previous survey. The investment outlook for the next six months was steady. Around 85 per cent of respondents reported higher or unchanged inventory levels for Q1 FY 2026-27, compared with about 86 per cent in Q4 FY 2025-26.
Cost and labour conditions remain important for textile and apparel supply-chain planning. FICCI reported that nearly 79 per cent of respondents saw production costs rise as a share of sales, compared with 70 per cent in the previous quarter, citing higher raw material, energy, logistics and utility costs, along with currency depreciation.
The survey also stated that 35 per cent of respondents planned to hire additional workers in the next three months, while 63 per cent reported no workforce availability issues and 37 per cent cited a shortage of skilled workers.
Fibre2Fashion News Desk
