A rough ride ahead

Nothing less than a miracle would dramatically change the manufacturing sector’s fortunes in the current election year after the challenging 2022 that saw temporary closures, deferments of expansion plans and scaling down of production by multiple businesses. Risks are higher for energy-intensive, import-reliant units, but prospects are relatively brighter for fast-moving consumer goods providers and high-tech manufacturers. The situation may aggravate further for cement, fertiliser, textile, chemicals, steel, petroleum refining, auto and pharma industries, at least in the first half of 2023. The high-tech goods manufacturers (defence equipment, electronic goods, mobile phones), FMCGs and labour-intensive consumer goods manufacturers may bode better next year. Some companies may benefit from rising prices, but generally, profitability might be squeezed over the year for the industry. Big businesses with captive power plants and greener energy solutions are expected to fare better. The business-to-business demand would be weaker than the business-to-consumer demand.