Manufacturing Sector Picks Up as Orders Rise

Bangalore: India’s manufacturing sectors are experiencing growth. According to Leif Eskesen, Chief Economist for India & ASEAN at HSBC, “Activity in the manufacturing sector expanded at a slightly faster pace in April. While output growth moderated ... new orders continued to pour in, including for exports," as quoted by Reuters.

According to the estimation done by Markit (financial information service company), HSBC India Manufacturing Manager’s Index (PMI) increased from 54.7 to 54.9. This index has remained above 50 for more than three years. PMI also expresses that in future these manufacturing sector would not need RBI rate cuts. Amidst India facing economic and fiscal challenges the PMI report would not suffice the recovery of the rupee.

“The release reduces the need for further monetary easing and is positive for the INR as well as for levels of INR OIS, although we continue to see the currency as vulnerable to external and fiscal imbalances,” Dariusz Kowalczyk, an economist with Credit Agricole CIB in Hong Kong.