Industrial Sector


  • The industrial sector (including manufacturing) was most significantly impacted during the first six months of the crises as number of infected cases increased rapidly. At the time, the sector was operating below the optimum level and utilization levels were below 50%.
  • Due to lockdown, most industrial activities were on a standstill.
  • Accordingly, this sector is expected to record a de-growth of (-) 9% for the entire financial year FY21.
  • A moderate recovery is expected in H2. Govex on infrastructure and allied sectors is expected to play an important role in this recovery of sorts.
  • Few industries pertaining to health sector are expected to post healthy growth.
  • Initially, the overall industrial activities were expected to remain weak. However, green shoots are already visible in the capital goods as well as consumer categories.
  • Maintenance of lower commodity prices and recovery in private consumption holds the key for the sector profitability – especially pertaining to the upper supply chain.
  • Nevertheless, the global recovery is pushing commodity prices upwards – posing a risk to the sectors concerned.
  • Additionally, recovery in exports aided by a weak INR - is expected to offset corporates’ losses in the domestic market.