IHS Markit India recently reported that despite the downturn in the economy, Manufacturing Purchasing Managers’ Index (PMI) jumped from 52.7 in Dec to 55.3 in Jan, its highest level in just under eight years.
The economy seems to be showing signs of a revival with India’s manufacturing sector activity climbing in January, driven by sharp rise in new business orders amid a rebound in demand conditions, leading to a rise in production and hiring activity.
Last month saw growth of new business, output, exports, input buying and employment following a sharp improvement in demand. Simultaneously, business sentiment strengthened and there were softer rises in both input costs and output charges.
Discussing the latest report, Pollyanna de Lima, principal economist, IHS Markit, asserted, “Manufacturing sector growth in India continued to strengthen in January, with operating conditions improving at a pace not seen in close to eight years.”
The Economic Survey 2019-20 projected India’s economy to grow in the range of 6-6.50% in the 2020-21 financial year.