A highly watched index reported that the manufacturing sector in India had grown at its quickest rate since October 2020 in March, marking the sector’s highest point in 16 years. India’s Manufacturing PMI was 59.1 in March, which saw a nearly all-time high rise in input stocks. The purchasing managers index, or PMI, was 56.9 in February, the highest level in the previous five months. It was 56.5 in January. The manufacturing PMI has shown expansion rather than contraction for 33 months running, staying over the critical 50-point threshold.
The sector with the best performance in terms of stockpiling and purchasing inputs was capital goods. The research claimed that manufacturers in India hired more people in March after maintaining payroll figures essentially steady in the preceding two months. Though modest, the rate of job creation was the highest since September 2023.
Cost pressures, meanwhile, hit their greatest point in the previous five months. Businesses reported paying more for necessities like cotton, iron, steel, plastics, mechanical tools, and steel. A “mixed picture” seems to be the manufacturing sector’s prognosis in India. Although 28% of businesses anticipate increased productivity in the upcoming year, there are still concerns about inflation. Despite this, businesses are still largely optimistic.