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Factory Utilisation: Looking At India’s Productivity

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Trader’s remarks: Capacity utilisation depicts the extent to which a manufacturing company uses its installed productive capacity, which is contingent on demand conditions as well as existing stocks. As capacity utilisation improves and there is a pick-up in demand, fresh investment would take place. Further, the level of capacity utilisation also throws light on the operations of the company or country, such as inventories, demand for credit, and others.

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