New Delhi: Strong demand in June continued to result in higher sales for manufacturing companies in India, and also positively impacted other aspects of businesses such as production levels and employment, a private sector survey report released Monday has found.
The S&P Global India Purchasing Managers’ Index (PMI) came in at 57.8 in June 2023. Although this was lower than the 58.7 score in May, the reading nevertheless pointed to a “considerable improvement in operating conditions”. The index is structured such that a score of less than 50 denotes a contraction in activity, and one above 50 denotes an expansion.
“Surging demand for Indian goods translated into higher sales figures for manufacturers, which underpinned another robust expansion in input purchasing as firms actively procured resources to support production growth,” the report said.
“Central to the upturn was demand strength, which positively impacted several other measures such as sales, production, stock building and employment,” it added.
According to the report, Indian manufacturers saw a sharp increase in new work orders during June, among the highest seen since February 2021. The report also pointed to an increase in new export orders, although these grew slower in June than in May.
“June’s PMI results again showed robust demand for Indian-made products, both in the domestic and international markets,” said Pollyanna De Lima, Economics Associate Director at S&P Global Market Intelligence, adding, “Positive client interest continued to support the manufacturing industry, driving growth of output, employment, quantities of purchases and input stocks.”
In response to this rising demand — which itself came on the back of a strong call in the previous month as well — manufacturing companies quickly ramped up their production levels.
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