India’s manufacturing industry back on its steady growth track

India’s manufacturing output showed maximum growth in 13 years in October amid robust sales growth, IHS Markit India purchasing managers’ index showed, indicating economic recovery was gaining ground after the lifting of lockdown restrictions.

November 2, 2020

The IHS Markit India Manufacturing Purchasing Managers’ Index (PMI) rose to 58.9 in October from 56.8 in September.

50 million GST e-way bills were generated and are further expected to grow by 11% more than September’s 57.4 million.

The Manufacturing Sector contributes to 18.32% of the economy and is also a significant employment generator hub.

Core sector contraction narrowed to 0.8% in September and GST collections crossing USD 13.52 billion.

Rising from 56.8 in September to 58.9 in October, the headline seasonally adjusted purchasing managers’ index (PMI) indicated the strongest improvement in the health of the sector in over a decade. An economic indicator, manufacturing activity, along with others showed significant improvement in the month of October following the steady relaxation of the COVID restrictions. If the indicators, give a value above 50 it signifies expansion in economic growth, however if the value is below 50 it indicates contraction. The IHS Markit India statement said growth was led by the intermediate goods category, but there were also robust expansions in the consumer and investment goods sub-sectors.

Manufacturing has traditionally played a key role in the economic growth and development of countries. In the last decade India has emerged as one of the fastest growing economies, wherein the manufacturing sector itself contributes to 18.32% of the economy and is also a significant employment generator hub.

As India gradually emerges out of the strict and unyielding coronavirus lockdown it had imposed to curb the spread of the deadly contagion, the economy of the country which had come to a standstill is showing positive and encouraging signs of robust economic recovery. Promising numbers from several sectors having profound impact on the overall economy suggest that the stagnation induced by coronavirus lockdown is long behind us and the country is once again marching towards growth.