Indian manufacturing saw a significant upswing in March due to a pickup in domestic demand and an increase in output, according to the Nikkei India Manufacturing Purchasing Managers’ Index (PMI).
Analysts said that the Index, which stood at an eight-month high of 52.4 in March, suggests a turnaround in the manufacturing sector and assumes significance following the country’s core sector output clocking its fastest growth in 15 months in February.
A value above 50 in the PMI implies an expansion, while one below 50 shows a contraction. The corresponding index values in January and February were 51.1. Core sector output grew 5.7 per cent in February.
Improving trend
“In the last ten years, the manufacturing PMI has fallen by an average 0.6 points between February and March, so this year’s 1.3 point rise is indicative of an improvement in the underlying trend, primarily led by strengthening domestic order demand,” said Sonal Varma and Neha Saraf, analysts at Nomura, in a report.