Average Interest Rate Paid By Manufacturers Rise To 9.38% : Ficci The survey further revealed that after experiencing revival of Indian economy in the FY 2021-22, momentum of growth has continued for the subsequent quarters of FY 2022-23 with some temporary effect of global slowdown on Indian manufacturing

A Fcci survey released on Monday revealed that the average interest rate per annum paid by manufacturers has risen to 9.38% in January-March as against 8.37% in the previous quarter, with a majority of firms reporting that their cost of borrowing has risen, according to a FE report.

The survey further revealed that after experiencing revival of the Indian economy in the FY 2021-22, momentum of growth has continued for the subsequent quarters of FY 2022-23 with some temporary effect of global slowdown on Indian manufacturing. "There are signs that the cost pressure witnessed in the last many months seems to be softening a bit for the sector," noted the latest Ficci Manufacturing Survey.

Moreover, hiring outlook though positive, remains below potential as only 32 per cent of the respondents were looking at hiring additional workforce in the next three months, according to the report.

In addition, the report noted that the average interest rate paid by the manufacturers has increased to 9.38% per annum as against 8.37% per annum during last quarter and the highest rate at which loan has been raised is 15% per annum..

"Over 71% of the respondents have reported that increase in repo rates in the last few months has led to a consequential increase in the lending rate by their banks, thereby increasing their cost of borrowing," Ficci stated on the survey.

The future investment outlook has also improved as compared to the previous quarter as over 47% respondents reported plans for investments and expansions in the coming six months. This is also an improvement over the previous survey where only 40% reported plans for investments in the next six months, the report added.