
Summary:
India’s industrial activity surged in January 2025, reaching its highest level in six months. The HSBC India Manufacturing PMI rose to 57.7 from 56.4 in December 2024, signaling strong manufacturing growth. New orders saw a dramatic increase, fueled by robust foreign demand, marking the strongest growth in 14 years. Output climbed to a three-month high, boosting business confidence, while employers expanded their workforce at the fastest rate since March 2005. Inflationary pressures also eased.
The improved manufacturing data provides relief to India’s economy, which has been struggling due to weak spending in recent quarters. A stronger manufacturing sector raises optimism, especially as the Reserve Bank of India (RBI) is expected to cut the repo rate to 6.25% at its upcoming meeting. Additionally, the government’s recent budget cuts in personal tax rates are aimed at stimulating domestic demand amid global economic uncertainty
Source: IBEF
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