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flag India's manufacturing sector surged in late 2025, with most firms reporting higher output, investment, and orders due to strong demand and favorable policies.

flag India's manufacturing sector is thriving in FY2025-26, with 87% of firms reporting stable or increased production in July–September 2025, up from 77% earlier, driven by strong domestic demand, recent tax cuts, and positive investment sentiment. flag Capacity utilization reached 75%, over half plan new investments, and 83% expect higher orders. flag Despite rising costs, 81% have sufficient credit access at an average rate of 8.9%. flag Exports are projected to hold steady or grow, especially in automotive, electronics, and chemicals, while 57% plan workforce expansion, though skilled labor shortages persist in some areas. flag FICCI stresses continued policy support and infrastructure development are key to sustaining growth.

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