The manufacturing PMI of the country has picked up slightly in May 2016, but the pace has been weak because the output growth softened for the second month in a row.
The Nikkei Manufacturing Purchasing Managers’ Index (PMI), compiled by Markit, rose to 50.7 in May from 50.5 in April. A reading above 50 indicates expansion.
There are off course some challenges that is not letting the manufacturing output growth and this has been advocated by analysts.
“Signs of challenging economic conditions in the Indian manufacturing sector were evident in May, with output losing further growth momentum. So far, there is little evidence that the latest cut in the benchmark rate acted to significantly improve business conditions for manufacturers. Therefore, further stimulus may be necessary to shift the economy into a higher gear,” said Pollyanna De Lima, an economist at Markit.
India has been yearning to be one of the biggest manufacturing destinations in electronics, defence, information technology, telecommunications domain and the government has also come up with slew of measures to encourage manufacturing in the country. Analysts feel that the government needs to do more for making manufacturing conducive in the country.
By Atanu Kumar Das
