OBICUS Survey on the Manufacturing sector for Q4:2020-21
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).