India has emerged as the world's fastest growing major economy, made possible by government spending on large infrastructure projects such as highways, railways, power plants and ports. This has a multiplier effect in creating more jobs and income which increases domestic demand for goods and services.
The HSBC Final India Manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, stood at 58.8 in April, slightly lower than March's 16-year high of 59.1. The index has now been showing a rising trend for 34 consecutive months.
HSBC Chief India Economist Pranjul Bhandari said, “April's manufacturing PMI recorded the second-fastest improvement in operating conditions in three-and-a-half years due to strong demand conditions.,
Business optimism improved as companies expected demand for higher production volumes over the next 12 months, leading to more workers being hired during the month. The survey said that due to increasing demand from companies, the cost of raw materials and wages have also increased.
"However, as demand remained resilient, companies passed on this growth to consumers through higher output charges, resulting in margin improvement," Bhandar said.
The IMF's World Economic Outlook report released last month raised India's growth forecast for 2024-25 by 0.3 percentage points to 6.8 per cent and saw the country as "a bright spot to support global growth over the medium term". . Also in other countries.,
China has lagged behind due to the collapse of the real estate sector and an economic slowdown caused by US sanctions, the IMF report said, adding that G20 key emerging market countries like India and Brazil are playing a bigger role in the global trading system and driving global growth. Are increasing.
The IMF report also vindicates India's economic policy as it attributes the strong growth rate to "strong domestic demand", driven by a revival in rural demand as well as a massive increase in government spending on large infrastructure projects .
Increased allocation to agriculture, rural employment schemes like MNREG and special programs for women self-help groups have helped in increasing rural demand and creating a larger market for industrial products.
The HSBC Final India Manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, stood at 58.8 in April, slightly lower than March's 16-year high of 59.1. The index has now been showing a rising trend for 34 consecutive months.
HSBC Chief India Economist Pranjul Bhandari said, “April's manufacturing PMI recorded the second-fastest improvement in operating conditions in three-and-a-half years due to strong demand conditions.,
Business optimism improved as companies expected demand for higher production volumes over the next 12 months, leading to more workers being hired during the month. The survey said that due to increasing demand from companies, the cost of raw materials and wages have also increased.
"However, as demand remained resilient, companies passed on this growth to consumers through higher output charges, resulting in margin improvement," Bhandar said.
The IMF's World Economic Outlook report released last month raised India's growth forecast for 2024-25 by 0.3 percentage points to 6.8 per cent and saw the country as "a bright spot to support global growth over the medium term". . Also in other countries.,
China has lagged behind due to the collapse of the real estate sector and an economic slowdown caused by US sanctions, the IMF report said, adding that G20 key emerging market countries like India and Brazil are playing a bigger role in the global trading system and driving global growth. Are increasing.
The IMF report also vindicates India's economic policy as it attributes the strong growth rate to "strong domestic demand", driven by a revival in rural demand as well as a massive increase in government spending on large infrastructure projects .
Increased allocation to agriculture, rural employment schemes like MNREG and special programs for women self-help groups have helped in increasing rural demand and creating a larger market for industrial products.
