In October, the country’s manufacturing sector picked up speed to offset the backlog, and industrial production hit a 13-year high, with sales showing the highest monthly growth in nearly 12 years.
The country’s manufacturing sector grew for the third month in a row. The Manufacturing Purchasing Managers’ Index (PMI) has jumped to a satisfactory 50 points in October, reaching 58.9. The easing of restrictions imposed to curb the outbreak of the Kovid-19 epidemic has led to a significant increase in demand as well as improved market conditions. Mainly in October, new works have been started.
The IHS Market India Index, which tracks the country’s private manufacturing sector, expanded for the third time in a row last month. The index had earlier risen to 58 points in October 2007. The previous record was 56.8 in September 2020. 50 degrees is the midpoint of this index, a satisfactory level of progress beyond 50 and a record below 50 is considered a sign of decline.
After 32 consecutive months of growth, the manufacturing PMI index was negative in April, the first of the current fiscal. This year, there was a high demand for manufactured goods, mainly in the healthcare sector.
The record for export output in October 2020 was at a nearly six-year high, while sales growth was the highest since mid-2008. Due to this significant increase in demand, companies have increased their production capacity, the pace of which is equal to that of October 2007.
Companies are now confident that the upswing shown in the market will continue in the coming months. Therefore, they have also started accelerating production capacity.