Manufacturing sector faces majow slow down during July-September quarter, due to rupee depreciation and slowdown in demand.Rupee depreciation has presumably affected the sector’s competitiveness severely over the last few months, says a Ficci’s quarterly report on manufacturing.
According to the survey, which drew responses from 418 manufacturing units and associations, 46 per cent respondents expects that the sector’s growth would be low in the second quarter of this fiscal. The manufacturing sector which constitutes over 75 per cent of the factory output, did not perform well as it grew a meager 2.5 per cent, as against 6.3 per cent in May, 2011.
Over 67 per cent respondents said they were affected by rupee depreciation in the last few months. “Rupee depreciation has led to increased cost of their imported raw materials and inputs by 5-25 per cent in last few months,” it said.
