The CII ASCON Industry Survey, which tracks the growth of the industrial sector through responses collected from sectoral industry associations, reveals an acceleration in demand reflected through an overall improvement in capacity utilization in Q4FY17 as well as an improvement in the investment outlook of the private sector in H1FY18.
Out of the 82 sectors surveyed, around 60 percent of the respondents have reported capacity utilization in the range of 50 to 75 percent for January – March FY17 quarter, registering a significant improvement from the previous quarter wherein various industries had witnessed disruptions in production during November and December on account of demonetization. 30 percent of respondents reported capacity utilization to be in the range of 50-75 percent in Q3FY17. Existence of surplus capacity along with weak corporate balance sheets have kept corporates from announcing addition of new capacities.