Growth has been registered in the manufacturing sector in the country during November. The PMI of IHS Markit, which was made to measure the growth of the manufacturing sector, reached 57.6 in November. In October it was at 55.9. The November figure is the top level of the last ten months. Apart from this, this average is also much higher than 53.6. A score below 50 indicates a decline in manufacturing activities, while a score above it indicates an increase in these activities.
Inflation to growth and the challenge of Corona
According to IHS Markit’s Economics Associate Director Poliana De Lima, India’s manufacturing sector showed expansion in November. In the coming days, the pace of the manufacturing sector will remain strong in these activities. However, the fear of increasing the Omicron variant of Corona and the pressure of inflation will remain. The report said that the company is bearing the burden of additional costs. That’s why they have rarely increased the output charges. However, it will be a matter to be seen in the coming days as to how the problems in shipping due to costly raw material and corona affect the sector.
India GDP: GDP grew by 8.4 percent in the second quarter, the government released figures
Fear of decrease in demand due to Corona
It has been said in the report that the inflationary pressure on manufacturing activities will continue in the coming days. Raw material prices are seen increasing in the month of October as well. At present, there does not seem to be any major decline in this. The companies in the manufacturing sector are facing the fear of rising inflation and due to this they may have to increase the prices of their products further. However, an increase of 8.4 percent in the GDP growth rate in July-September can help maintain the momentum in demand.
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