New Delhi:
Due to rising consumer demand in India, manufacturing activities picked up and led to the fastest rise in HSBC’s final India Manufacturing Purchasing Managers’ Index (PMI) in 19 years, the data showed. These data were compiled by S&P.
“Growth in India’s manufacturing sector has been solid in the June quarter. The headline manufacturing PMI rose 0.8 percent to 58.3 in June,” said Maitreyi Das, global economist at HSBC.
The report said that the performance of consumer goods industries has been very strong, while the intermediate and investment goods category has also seen good growth, based on responses from 400 companies in the survey. Export growth is expected to be much better than last year in Asia. , increased new orders from Australia, Brazil, Canada, Europe and the US.
Maitreyi Das said input inflation is still above the long-term average, however, producers are passing on higher costs to consumers. At the same time, due to higher demand, margins are improving.
Union Commerce and Industry Minister Piyush Goyal says India’s exports of goods and services could grow by 3 percent and cross the $800 billion mark in fiscal 2024-25.
Recently, the Reserve Bank of India (RBI) has raised its GDP growth estimate for the current financial year to 7.2 percent from 7 percent.
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