Capacity utilization in manufacturing sector rises on year-on-year basis

The Reserve Bank of India (RBI) has released results of its 70th round of the quarterly Order Books, Inventories, and Capacity Utilisation Survey (OBICUS), which was conducted during Q2:2025-26 and covered 980 manufacturing companies. The survey provides a snapshot of the demand conditions in Indias manufacturing sector during April-June 2025. At the aggregate level, capacity utilisation (CU) in the manufacturing sector recorded a seasonal decline to 74.1 per cent in Q1:2025-26 from 77.7 per cent in the previous quarter. The seasonally adjusted CU (CU-SA) increased by 30 basis points from the previous quarter and stands at 75.8 per cent in Q1:2025-26. Both CU and CU-SA for Q1:2025-26 are higher compared to their levels in the corresponding quarter of the previous year. Manufacturers reported seasonal decline in the growth of new orders during Q1:2025-26 on sequential (q-o-q) basis. On an annual (y-o-y) basis the growth remained stable.

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