RBI Initiates Quarterly Survey to Gauge Manufacturing Capacity and Order Book (OBICUS)
SDG 9: Industry, Innovation and Infrastructure | SDG 8: Decent Work and Economic Growth
Institutions: Reserve Bank of India (RBI) | Ministry of Finance
The RBI has launched the 71st round of its Order Books, Inventories and Capacity Utilisation Survey (OBICUS) for the manufacturing sector, covering the reference period July β September 2025 (Q2:2025-26). This ongoing quarterly exercise collects comprehensive quantitative data essential for monitoring industrial health. The survey gathers precise information on new orders received during the quarter, the accumulated backlog of orders, and the value of inventories, which is segregated into Raw Material (RM), Work-in-Progress (WiP), and Finished Goods (FG). Crucially, the data is used to estimate the level of Capacity Utilisation (CU) across industries. This detailed monitoring of demand (orders) and supply (CU and inventories) provides critical, high-frequency insights into the trajectory of industrial growth and potential price pressures within the Indian economy.
The OBICUS data is a crucial input for the Monetary Policy Committee (MPC) under the RBI Act, 1934, allowing it to assess real-time aggregate demand and supply side pressures to guide inflation-targeting decisions.
What is Capacity Utilisation (CU)? A measure of how much of a companyβs or industryβs total installed production capability is actually being used. It matters for policy as it signals whether the economy is near its production limits, which can indicate future investment needs and inflationary pressures.
Relevant Question for Policy Stakeholders: How should the RBI weigh the OBICUSβs quantitative capacity utilization data against other forward-looking indicators when determining the future stance of interest rates?
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