India’s manufacturing growth steady last month: HSBC survey

The HSBC India Manufacturing Purchasing Managers’ Index (PMI), which is a measure of factory production, was at 52.8 during September, similar to August.

The September reading of HSBC PMI displays the considerable improvement in the health of the manufacturing segment since the sector saw the weakest growth rate in nine months during August.

Moreover, the index was above the 50-mark, below which it shows contraction.

HSBC Chief Economist for India and the ASEAN Leif Eskesen said, “Economic activity in the manufacturing sector held steady supported by faster output growth and rising export orders. However, a rise in inventories may dampen output growth in the coming months. Looking ahead, growth in the manufacturing sector is likely to remain subdued, although implementation of recently announced reforms will help facilitate a gradual recovery during the second half of the fiscal year.”

In then past few days, Centre took quite a reform steps like allowing 51% FDI in multi-brand retail sector, raising diesel prices by over Rs 5 a litre, imposing cap of subsidised LPG cylinders to six per family per year, permitting foreign carriers to acquire stake in domestic airlines and liberalising FDI rules for broadcasting sector.