New Delhi: A private sector survey report released on Monday found that sales of manufacturing companies in India increased in June due to strong demand, and also had a positive impact on other aspects of businesses such as production levels and employment.
The S&P Global India Purchasing Managers’ Index (PMI) came in at 57.8 in June 2023. Although it was down from the 58.7 score in May, the reading still pointed to “considerable improvement in operating conditions”. The index is structured in such a way that a score below 50 indicates contraction in activity, and a score above 50 indicates expansion.
“Growing demand for Indian goods translated into higher sales figures for manufacturers, underlining another strong expansion in input purchases as companies actively procured resources to support production growth,” the report said. “
It added, “The core of the uptick was the strength of demand, which positively impacted a number of other measures such as sales, production, stock formation and employment.”
According to the report, Indian manufacturers saw a sharp increase in new work orders during June, the highest since February 2021. The report also pointed to an increase in new export orders, though at a slower pace in June than in May.
“The June PMI results again showed strong demand for Indian-made products in both domestic and international markets,” said Pollyanna De Lima, associate director of economics at S&P Global Market Intelligence. To promote growth in production, employment, volume of procurement and input stock.”
In response to this rising demand – which also came in the wake of a strong call last month – manufacturing companies rapidly ramped up their production levels.
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