Industry body Ficci in its latest quarterly survey said 47 percent of the 276 manufacturing units and associations that participated in it expect a slight upturn in manufacturing activity in the second quarter.
"The proportion of respondents who expect to report higher levels of production in the second quarter of 2013-14 has improved to 47 percent as compared to over 35 percent in the first quarter," it said.
This is on account of the government's efforts to remove bottlenecks by clearing large projects and a better export outlook, it added.
Output of the manufacturing sector, which constitutes over 75 percent of the index of industrial production (IIP), contracted by 2 percent in May as against a growth of 2.6 percent in the year-ago month.
Also, the survey said, proportion of surveyed people expecting any fall in their production level has reduced to 16 percent as compared to 26 percent in the last quarter.
However, it said, the demand conditions remain subdued as only 32 percent respondents reported higher order books for July-September 2013 vis-a-vis the April-June 2013.
Besides, it said, the rupee depreciation has impacted the raw-material cost of manufacturing units.
"On an average, rupee depreciation has increased input cost by 11 percent for manufacturers," it said.     

It said majority of respondents feel that they are not likely to hire new workforce in the next three months.
The survey has gauged the expectation of manufacturers for second quarter for 12 major sectors like textiles, capital goods, cements, electronics and chemicals.


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