MANUFACTURING GROWTH
India's services growth picks up in June on record rise in exports
India's services sector saw robust growth in June, driven by strong demand and record export orders, according to the HSBC India Services PMI by S&P Global. The index rose to 60.5, indicating expansion. Hiring reached its highest in nearly two years, while positive sentiment dipped slightly due to market uncertainty.
Women in India face a jobs crisis. Are factories the solution?
As international brands limit their dependence on China by shifting some manufacturing to India, the trend holds the potential to generate significant numbers of manufacturing jobs - especially for women, who have largely been excluded from the ranks of formal Indian employment.
UK manufacturing growth slows as shipping delays hit exports, PMI shows
While output and overall new orders grew at close to their fastest pace in two years, export orders fell for a 29th successive month, due to the shipping delays and high freight costs.
VCs chase auto parts makers to hitch a ride on EV journey
Smaller component makers for electric vehicles (EVs), many of which started with other businesses before pivoting to their current business mainstays, are increasingly attracting interest from venture capital firms amid a boom in EV sales. The boom in EV sales, as demonstrated in the sales of passenger EVs jumping 91% and of commercial EVs tripling year-on-year (YoY) in FY24, has meant that the demand for parts has also soared.
Economy on strong wicket after fiscal first quarter
India's economy showed strong first-quarter performance with surging manufacturing activity, robust GST collections, and record-high Sensex, alongside a rise in passenger car sales and new export orders from overseas markets, as highlighted by industry experts and economic indicators.
Budget 2024: Will India’s robust manufacturing segment sway Sitharaman’s decisions? A look at PMI numbers
India manufacturing PMI Budget 2024 | Finance Minister Nirmala Sitharaman's upcoming Budget for 2024 is set against the backdrop of robust manufacturing PMI readings, signaling strong economic growth. The latest GDP figures for Q4 and FY24 underscore this momentum, driven by resilient manufacturing and services sectors. Amid global uncertainties, the budget aims for continuity, balancing growth and coalition priorities.
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Budget 2024: A look at India’s GDP growth rate before Sitharaman sets the ball rolling in Lok Sabha
Budget 2024 GDP | Finance Minister Nirmala Sitharaman is preparing to unveil Union Budget 2024 in July, underlining India's robust GDP growth. With GDP climbing to 7.8% in Q4 FY24 and an estimated 8.2% for FY24, policies will focus on sustaining growth momentum. The budget aims to align economic strategies with evolving demands amidst global uncertainties.
Record upturn in job creation drives India's manufacturing PMI to 58.3 in June
Activity in India's manufacturing sector rebounded last month with an increase in output driven by robust demand, leading to the fastest rate of hiring in over 19 years despite ongoing inflationary pressures, according to a survey.
VCs chase auto parts makers to hitch a ride on EV journey
Smaller component makers for electric vehicles (EVs), many of which started with other businesses before pivoting to their current business mainstays, are increasingly attracting interest from venture capital firms amid a boom in EV sales. The boom in EV sales, as demonstrated in the sales of passenger EVs jumping 91% and of commercial EVs tripling year-on-year (YoY) in FY24, has meant that the demand for parts has also soared.
Increase in exports, improvement in CAD, mnfg to help boost Indian economy: Goyal
India's merchandise exports show growth despite a widened trade deficit, reflecting a positive economic outlook. The Commerce Minister's participation in the gem and jewellery industry program signifies confidence in the country's economic trajectory.
India economy likely to sustain high growth trajectory: ITC
Indian conglomerate ITC predicts the Indian economy will sustain its high growth trajectory in FY2024-25 due to strong momentum in fixed investments and private consumption. The growth is supported by a good Rabi harvest and normal monsoons. Factors like a favorable demographic profile, increasing affluence, rapid urbanisation, and accelerated digital adoption are key structural drivers of the Indian economy.
Fiscal discipline key to India's growth prospects: Sanjay Nayar
So, we will have to also think about how we channel the energies towards more advanced and more modern techniques and technology, because that is what we need right now.
How to fix skilling the competition
Legislation is needed to bring parity in working conditions among blue- and white-collar workers. Where this is not possible - for instance, in construction - wages must adjust to the harshness of outdoor work. Industry also has to commit more towards tenure of employment for manual labour in order to draw in a newer generation of workers.
Private consumption seen growing, concerns on capex growth: Morgan Stanley Research
Consumption growth has remained weak since the pandemic, recovering at a slow pace. Private consumption is recovering, with growth is tracking at 4% in the quarter ended March 31, 2024 as against 1.5% a year ago but it is just catching up to the pre-pandemic trend and remains below the pre-pandemic average of 6.3% in 2019.
India business activity rises in June, job creation at 18-year high
India's business activity expanded at a faster pace this month than in May, thanks to gains in manufacturing and services. The pace of job creation was at its strongest in over 18 years, marking a strong start to the country's economy this financial year. HSBC's flash India Composite Purchasing Managers' Index rose to 60.9 in June, marking nearly three years above the 50-level separating growth from contraction.
Rising heat cools mfg PMI to 3-mth low as input costs bite
Manufacturing activity decreased to 57.5 in May from 58.8 in the previous month due to heatwaves and rising costs, as per a private survey by HSBC. The sector saw a softer rise in new orders and output, impacting work hours and production volumes for manufacturing firms.
Manufacturing activity eases to a three-month low of 57.5 in May
The seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index remained four points higher than the long-run average, with exports helping drive momentum.
Economy expands 7.8% in Q4, lifting FY24 growth to 8.2%
This is the highest annual growth since FY17, excluding the 9.7% post-Covid rebound in gross domestic product (GDP) in FY22 after the 5.8% contraction in FY21. The advance estimate released in February had pegged FY24 growth at 7.6%. Economists and government expect the high growth to continue though tepid private consumption remains a concern.
Govt may lower fiscal deficit target below 5.1 pc for FY25
For previous financial year ended March 2024, the fiscal deficit was better at 5.6 per cent of the GDP as against estimates of 5.8 per cent accounted in the interim Budget presented on February 1.
Economists project continued economic momentum and stability after India reports robust GDP growth in Q4
India's economy experienced a 7.8% growth rate in the January-March quarter, surpassing expectations due to strong performance in the manufacturing sector. The GDP growth in the fourth quarter of FY24 was slightly lower than the revised 8.6% growth in the previous quarter. Economists are optimistic about sustained momentum throughout the year, with the gap between GDP and gross value added (GVA) expected to normalize from the second quarter of FY25.
Moody's projects 6.8 per cent GDP expansion in 2024 on strong growth, post-election policy continuity
Moody's Ratings projected India's growth at 6.8% in 2024, followed by 6.5% in 2025. The prediction was driven by economic expansion and post-election policy continuity. The real GDP grew by 7.7% in 2023, with strong government spending and manufacturing activity. High-frequency indicators suggest sustained momentum in the economy. Moody's expects 6-7% annual GDP growth with policy continuity and increased capital expenditure. Private investment outlook is positive, despite inflation volatility.
Indian economy likely grew at weakest pace in a year in Jan-March, says Reuters poll
India's economy likely experienced its slowest growth in a year during the January-March quarter, attributed to weak domestic demand, according to a Reuters poll of economists. This follows a surprising 8.4% GDP growth in the October-December quarter, boosted by a sharp drop in subsidies that artificially increased net indirect taxes, while gross value added (GVA) grew by 6.5%. For the January-March period, GDP growth is expected to have slowed to 6.7%, with GVA growth at 6.2%.
Growth momentum likely to stay in Q1FY25: FinMin
The finance ministry's April report predicts strong economic activity in FY25, with rising industrial activity and fixed investments. Positive macro-economic indicators include a bright manufacturing outlook and improved services sector, supported by increased capacity utilization and EPFO data.
Private sector activity picks up to 61.7 in May, according to HSBC Flash PMI
The HSBC Flash India Composite Output Index rose to 61.7 in May compared with 61.5 in the previous month. “The latest data showed strength in new export orders for both sectors, which rose at the fastest pace since the series started in September 2014,” said Pranjul Bhandari, chief India economist, HSBC.
India May business growth robust as exports rise at record pace, PMI shows
HSBC's flash India Composite purchasing managers' Index , compiled by S&P Global, rose slightly to 61.7 this month from April's final reading of 61.5, marking the 34th month above the 50-level separating growth from contraction.
India needs to create 115 million jobs by 2030, research shows
India needs to create 115 million jobs by 2030 to boost services and manufacturing for economic expansion. The country must generate 16.5 million jobs annually, 10.4 million from the formal sector, to address high youth unemployment and low labor force participation rate.
30% of global GDP growth will come from India between 2035-2040: Amitabh Kant
Amitabh Kant, India's G20 Sherpa and former Niti Aayog chief, praised India's structural reforms, noting that they have elevated the country from the "fragile 5" to the "top 5," resulting in a growth rate of approximately 8.4% over the last three quarters. Kant highlighted analysts' projections that foresee India contributing 30% to global GDP growth between 2035-2040.
India needs to focus on factor market reforms to propel growth to double digit: ADB Chief Economist
Labour reforms have been approved by Parliament in 2020, but it has not been implemented. In 2019 and 2020, 29 central labour laws were amalgamated, rationalised and simplified into four labour codes -- the Code on Wages, 2019; the Industrial Relations Code, 2020; the Code on Social Security, 2020; and the Occupational Safety, Health & Working Conditions Code, 2020.
IIP growth eases to 4.9% in March but grows faster at 5.8% in FY24
Among the three major industries, manufacturing and electricity recorded a faster pace of growth in March compared with the previous month, expanding 5.2% and 8.6% compared with 4.9% and 7.5% in February. On the other hand, mining activity eased sharply to 1.2% from 8.1% in the previous month.
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