For the past 21 months, India’s manufacturing PMI has been in expansionary territory. According to data released on April 3, activity in the manufacturing sector continued to expand in March, with the S&P Global Purchasing Managers’ Index (PMI) reaching 56.4, up from 55.3 in February.
An Outline
A perusing over 50 demonstrates development in action, while a sub-50 print indicates constriction. This is India’s 21st consecutive manufacturing PMI print above 50. At 56.4, the Walk PMI print is at a three-month high.
“India’s manufacturing sector posted a remarkable performance at the end of the final fiscal quart,” according to a statement from S&P Global. In March, new export orders increased, indicating that foreign demand for Indian goods was also rising. However, the increase in new export orders was muted compared to previous levels.
The improvement in the assembling movement will light up the mindset of policymakers who have seen the area assume a lower priority lately while administration action has hit new highs. The services PMI hit a 12-year high of 59.4 in February, according to data released last month.
End Note
The robust manufacturing PMI data were released the same day that government data revealed that India’s total Goods and Services Tax collections increased to Rs. 1.6 lakh crore in March.
The second-highest level since July 2017 was when the new indirect tax regime was enacted. The survey conducted by S&P Global revealed evidence of “only mild pressure” on capacity despite the expansion of manufacturing output.
