The manufacturing sector’s aggregate level capacity utilisation (CU), a measure of productive efficiency, recovered to 63.3 percent in the September quarter (Q2FY21), after registering an unprecedented low of 47.3 percent in the June quarter (Q1FY21) in the wake of the COVID-19 pandemic, said the Reserve Bank of India’s (RBI's) survey on manufacturing sector.
The survey, released on February 5, 2021, provides a synopsis of demand conditions in India’s manufacturing sector, giving valuable input for monetary policy formulation.
The recovery indicates a positive development for the sector and the economy as a whole with the government's emphasis on self-reliance. The manufacturing sector was one of the hardest-hit sectors, recording a growth of (-) 1.7 percent in November 2020 as against (-) 66.6 percent growth in April-2020.
The 51st round of the Order Books, Inventories and Capacity Utilisation Survey (OBICUS) for July-September 2020 quarter covered 602 manufacturing companies. “Seasonally adjusted CU also increased to 64.1 percent in Q2FY21 from 47.9 percent in the previous quarter,” the report said.
With the opening up of the economy and ease in restrictions, manufacturing companies received “substantially higher new orders” in Q2FY21 as compared to the quarter in the previous year, data showed.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.