{"id":250894,"date":"2023-07-05T20:24:07","date_gmt":"2023-07-05T14:54:07","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=250894"},"modified":"2023-08-31T14:21:33","modified_gmt":"2023-08-31T08:51:33","slug":"what-explains-the-resilience-of-indian-manufacturing","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/what-explains-the-resilience-of-indian-manufacturing\/","title":{"rendered":"What explains the resilience of Indian manufacturing?"},"content":{"rendered":"\n

Source<\/strong>: The post is based on the article\u00a0\u201cWhat explains the\u00a0resilience of Indian\u00a0manufacturing?\u201d <\/strong>published in Live Mint <\/strong>on\u00a05th<\/sup> July 2023<\/strong>.<\/p>\n

Syllabus: <\/strong>GS 3 \u2013 Indian Economy \u2013 Growth & Development, Industrial Policy<\/strong><\/p>\n

Relevance: <\/strong>About the improving manufacturing sector in India<\/strong><\/p>\n

News<\/strong>: The Manufacturing Purchasing Managers\u2019 Index (PMI) shows India as the only large economy whose factory output is growing significantly.<\/p>\n

What is Purchasing Managers\u2019 Index (PMI)?<\/strong><\/h2>\n

Read Here:<\/strong> What is\u00a0 Purchasing Managers Index\u00a0 PMI?<\/strong><\/a> \u00a0and <\/strong>Purchasing Managers Index(PMI) for manufacturing slipped to two years low<\/strong><\/a><\/p>\n

PMI involves surveys of purchasing managers in 500 manufacturing companies across 19 industries in India.<\/p>\n

It helps analysts and economists to correctly anticipate the changing economic trends in GDP, inflation, employment and industrial production.<\/p>\n

How is India\u2019s manufacturing faring?<\/strong><\/h2>\n

The PMI was at 57.8 in June, slightly lower than 58.7 in May. A PMI above 50 indicates expansion or growth compared to the previous month, while a value below 50 signifies contraction.<\/p>\n

India’s manufacturing PMI is indicating the resilience of the country’s factory sector.\u00a0<\/strong><\/p>\n

The first three months of FY24 also saw a high manufacturing PMI, indicating a rebound in manufacturing<\/strong>, after a contraction of 1.3% in FY23.<\/p>\n

This has led to an increase in business confidence and optimism around future business activity among the industry.<\/p>\n

What has caused the manufacturing sector to revive?<\/strong><\/h2>\n

Strong demand from both domestic and international markets<\/strong> led to significant enhancements in production, sourcing, and hiring.<\/p>\n

As per the experts, this positive trend has been due to the government’s increased spending, especially in capital expenditure,<\/strong> and due to the increasing demand for private consumption<\/strong>, which grew by 7.5% in FY23.<\/p>\n

What does this mean for the economy?<\/strong><\/h2>\n

Strong manufacturing performance is crucial for India to achieve high GDP growth.\u00a0<\/strong><\/p>\n

However, this growth is accompanied by higher inflation and wage costs.<\/strong> Despite this, since demand is high, it will allow companies to pass on the increased costs to consumers.<\/p>\n

How are other economies faring?<\/strong><\/h2>\n

Major economies worldwide are facing challenges in their manufacturing sectors.<\/p>\n

China’s June PMI of 50.5 was lower than May’s 50.9<\/strong>, and manufacturing business confidence has reached an eight-month low.\u00a0China is also struggling with<\/strong> declining export demand and falling employment.<\/p>\n

Even the Eurozone saw a PMI of 43.4 in June<\/strong>, indicating further contraction compared to May’s 44.8. Similarly, the United States recorded<\/strong> a PMI of 46.3 in June, marking a six-month low compared to May’s 48.4.<\/p>\n

The contraction in the UK’s manufacturing sector has also worsened<\/strong>.<\/p>\n

\"\"<\/strong><\/p>\n

Source:<\/strong> Mint<\/p>\n","protected":false},"excerpt":{"rendered":"

Source: The post is based on the article\u00a0\u201cWhat explains the\u00a0resilience of Indian\u00a0manufacturing?\u201d published in Live Mint on\u00a05th July 2023. Syllabus: GS 3 \u2013 Indian Economy \u2013 Growth & Development, Industrial Policy Relevance: About the improving manufacturing sector in India News: The Manufacturing Purchasing Managers\u2019 Index (PMI) shows India as the only large economy whose factory… Continue reading What explains the resilience of Indian manufacturing?<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[216,8184,10501],"class_list":["post-250894","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-indian-economy","tag-live-mint","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/250894","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=250894"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/250894\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=250894"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=250894"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=250894"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}