India's manufacturing growth News

The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of March 2020 stand at 132.7, 114.8 and 149.2 respectively. 

The Niti Aayog vice chairman also pointed out that in manufacturing and services PMI, the lowest point reached in July and therefrom it has started rising.

According to the global financial services major, two recent policy measures -- demonetisation in November 2016 and GST rollout in July 2017 had a short term impact on economic activity and aggravated the already slowing momentum.

With companies still grappling with new tax rules, business surveys are pointing to more pain ahead. Services and manufacturing activity contracted at their fastest rate in years in July, the month that the GST was launched.

Experts feel demonitisation and huge destocking before the launch of the Goods and Services Tax (GST) can be the reasons for the unexpected slow down of India`s economic growth to 5.7 percent in the June quarter, the slowest pace in three years.

All the three monitored sub-sectors posted substantial recoveries, with capital goods outperforming its consumer and intermediate goods counterparts in terms of production growth rates, the survey said.

The manufacturing sector, which constitutes over 75 percent of the IIP index, contracted by (-) 0.4 percent in June compared to 7.5 percent growth a year ago. 

The rupee has risen more than six percent this year against the dollar. This is in contrast to six consecutive years of depreciation.

Manufacturing sector in India contracted in July following the GST launch as new orders and output dropped for the first time since the downturn in December last year post demonetisation.

Manufacturing growth eased to a four-month low in June owing to weak client demand, water scarcity and concerns related to GST, a monthly survey showed today, rekindling rate cut call.

Industrial output growth slipped to 2.7 percent in March, chiefly because of poor performance of the manufacturing sector, showed the IIP data based on the revised base year of 2011-12.

India's industrial production contracted by 1.2 percent in February due to poor performance of manufacturing sector coupled with decrease in output of capital goods, as per data released by Central Statistics Office (CSO).

Activity in India`s manufacturing sector expanded at the fastest pace in five months in March as output and new orders accelerated, according to a private survey that also showed price pressures eased.

Hit hard by demonetisation move, manufacturing growth decelerated sharply in November as cash crunch slowed down domestic consumption, production of goods and new orders, even as subdued inflationary pressure raised hopes for a rate cut by RBI, a monthly survey showed Thursday.

Indian factory activity cooled in September on slowing growth in new orders and production and as manufacturers charged slightly higher prices, although muted inflation should give the central bank room to ease policy further, a survey showed.

Recording "solid improvement", manufacturing sector growth touched a 13-month high in August bolstered by expansion in new works as well as acceleration in buying and production levels, says a survey.  

India's manufacturing sector may witness higher growth during the July-September quarter buoyed by improvement in export prospects and domestic demand, even as the hiring outlook remains subdued, according to a survey.  

A good monsoon can help add "a percentage point" to India's GDP growth in the current fiscal, from 7.6 percent in 2015-16, NITI Aayog Vice Chairman Arvind Panagariya said Wednesday expressing confidence in crossing the 8 percent mark.

India's GDP is likely to "auto correct", and the headline growth of the country in this fiscal is expected to remain flat at 7.4 percent, says an HSBC report.

Manufacturing sector activity dropped to a four-month low in April as new orders stagnated during the month following a robust increase in March, a survey showed Monday, putting pressure on Reserve Bank to keep interest rates low.