India’s Manufacturing Industry Expands To 14-Month High; Employment, Sales Significantly Improve

India’s manufacturing industry in February (2019) expanded to its 14-month high, displaying a significant improvement in indicators like sales and output and employment, reports Press Trust of India (PTI).

The Nikkei India Manufacturing Purchasing Managers' Index increased to 54.3 in February, from 53.9 in January. While PMI above 50 denotes an expansion in factory output, a number below 50 shows economic contraction.

"The Indian manufacturing sector made further progress midway through the final quarter of FY18, building on the accelerated upturn noted in January," said Pollyanna De Lima, Principal Economist at IHS Markit and report’s author.

It should be noted that February was the 19th consecutive month that the Indian manufacturing PMI remained above the 50-point mark, thus depicting sustained economic growth. Also according to the survey, last month recorded the sharpest rise in factory orders in the previous 28 months.

Lima added that the increase in employment was one of the best for the last six-and-a-half years, as firms expanded output capacities to meet increasing demand from both domestic and external sources.

Sound Economic Fundamentals

Recently Prime Minister Narendra Modi stated that India was on track to become a $5 trillion economy in the coming years and was currently the fastest growing large economy in the world.

“India today, a country of 1.25 billion people, is going through a great transition...The fundamentals of our economy are sound. We are well set to become a $5 trillion dollar economy in the near future,” he had said.

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