New Delhi, June 30 -- Manufacturing sector sentiment moderated in the first quarter of FY 2026-27 compared to the previous quarter, reflecting the potential impact of the West Asia crisis even as stable domestic fundamentals helped cushion the overall outlook, according to the 70th edition of FICCI's Quarterly Survey on Manufacturing (QSM)

The survey found that approximately 77 per cent of respondents reported higher or stable production levels in Q1 FY2026-27, down from 93 per cent in Q4 FY2025-26. A similar moderation was visible in demand, with 77 per cent of respondents reporting higher or stable orders in the latest quarter compared to 89 per cent previously.

The survey assessed performance and sentiment across eight major manufact...