New Delhi: The outlook for India's manufacturing sector seems to have improved in the October-December 2021 quarter even as the cost of doing business remains a cause for concern and hiring prospects to remain subdued, according to a FICCI survey.

The findings of the latest quarterly survey on manufacturing unveiled on Sunday also reflect sustained economic activity in the sector, with exist- ing average capacity utilisation in the range of 65 to 70 percent.

It also highlighted that manufacturers are looking forward to the upcoming Union Budget to enhance growth and in- vestments in the sector.

The percentage of respondents reporting higher production in the third quarter of 2021-22 was around 63 percent, almost double than the year-round period (around 33 percent), noted FICCI.

This assessment is also re- reflective in order books as 61 percent of the respondents in October-December 2021-22 had a higher number of orders as against July-September 2021-22, the survey found.

High raw material prices, high cost of finance, the uncertainty of demand, shortage of working capital, high logistics cost, low domestic and global demand due to supply chain disruptions are some of the major constraints that are affecting the expansion plans of the respondents, it said.

Source- PTI