India's Manufacturing Index Soars to All-Time High in Q3 FY26: FICCI Survey

• India's manufacturing activity reached a record high in Q3 FY26, with 91% of respondents reporting higher or unchanged production levels.
• Demand sentiment strengthened, with 86% of firms expecting higher or stable domestic orders, partly due to recent GST rate cuts.
• Capacity utilisation remained near 75%, indicating sustained economic activity, though global and regulatory issues pose expansion constraints.
• Export levels are stable or increasing for 69% of respondents in Q2 FY26, with 70% expecting similar trends in Q3 FY26.
• Hiring intent improved, with 38% planning to expand their workforce, but production costs remain high due to raw material prices and logistics.

Why It Matters: India's manufacturing sector achieved record growth in Q3 FY26, driven by strong demand and production.