India's manufacturing sector demonstrated continued growth in the fourth quarter of FY26, with 93% of surveyed firms reporting stable or increased production levels, up from 91% in the previous quarter, as per a survey by the Federation of Indian Chambers of Commerce and Industry (Ficci). Domestic demand remained robust, with 89% of respondents anticipating stable or rising orders. However, 70% of manufacturers reported increased production costs due to higher raw material prices and other expenses, compared to 57% in the previous quarter. Capacity utilization saw a slight decline to 72%, with textiles achieving the highest utilization at 76.4%. Optimism persists in the sector, as 41% of firms plan to hire more workers in the next three months, up from 38% in Q3. Export sentiment also improved, with 80% of manufacturers expecting stable or increased export levels. The survey included over 250 manufacturing units with a combined turnover exceeding ₹8 lakh crore (approximately $960 billion USD).