Today, the Reserve Bank released the results of the 53rd round of the Order Books, Inventories and Capacity Utilisation Survey (OBICUS) for the January-March 2021 quarter covering 584 manufacturing companies. The survey provides a snapshot of demand conditions in India’s manufacturing sector¹.

Highlights:

• The aggregate capacity utilisation (CU) level increased to 69.4 per cent in Q4:2020-21 from 66.6 per cent recorded in the previous quarter, supported by gradual improvements in demand conditions after further easing of restrictions related to the COVID-19 pandemic, before the onset of its second wave in mid-March 2021 (Chart 1).

• Manufacturing companies received more new orders during Q4:2020-21, when compared to that in the previous quarter as well as in the corresponding quarter a year ago (Chart 2).

• New order growth (Y-o-Y) remained positive from Q2 to Q4:2020-21 after remaining in the negative terrain for the preceding two quarters, which were partially affected by the nation-wide lockdown conditions after the onset of the pandemic.

• As sales increased at faster pace when compared to the increase in raw material inventory (RMI) and finished goods inventory (FGI) during Q4:2020-21, the ratios of both RMI and FGI to sales declined (Chart 3).

Note - Please see the excel file for time series data.

ANNEX 1: Data Tables

¹ The survey responses are voluntary. Results of the previous survey round were released on the Bank’s website on April 07, 2021.