According to a quarterly survey by the Federation of Indian Chambers of Commerce & Industry (Ficci), India's manufacturing sector remained resilient in the January-March quarter of 2025-26 despite facing rising input costs and disruptions from the West Asia crisis. 93% of manufacturers reported stable or increased production levels, up from 91% in the previous quarter. Domestic demand remained steady, with 64% of respondents noting an increase in order book numbers compared to the previous quarter. Additionally, 41% of firms indicated plans to hire more workers in the next three months, a slight increase from 38% in the prior quarter. However, manufacturers faced significant cost pressures, with nearly 70% reporting an increase in production costs as a percentage of sales, driven by higher raw material prices and electricity costs. Average capacity utilization stood at around 72%, slightly lower than before, with textiles and apparel sectors showing the highest utilization at 76.4%. Despite these challenges, the investment outlook for the next six months remains steady.