The performance of the consumer goods industry was especially strong
In June, India’s manufacturing sector gained momentum due to increasing consumer demand, resulting in the fastest rate of hiring in 19 years, as reported by HSBC’s final India Manufacturing Purchasing Managers’ Index (PMI), compiled by S&P Global and released on Monday.
The performance of the consumer goods industry was especially strong, although substantial increases were also noted in the intermediate and investment goods categories, the report stated.
“The Indian manufacturing sector ended the June quarter on a stronger footing. The headline manufacturing PMI rose by 0.8 percentage points to 58.3 in June, supported by increased new orders and output,” said Maitreyi Das, global economist, HSBC.
Export growth is expected to outpace the previous year’s performance. The 400 firms surveyed for the index recorded another month of strong growth of new export orders, with Asia, Australia, Brazil, Canada, Europe, and the US being the driving economies.
Reserve Bank of India recently revised India’s growth forecast upward to 7.2 percent from 7 percent.
Input inflation remains above the long-run average. However, manufacturers could pass on higher costs to customers, as demand remained robust, resulting in improved margins,” said Das.
Commerce and Industry Minister Piyush Goyal has projected that India’s goods and services exports are likely to increase by 3 percent to surpass $800 billion in 2024-25.
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