NEW DELHI: India’s growth story is gathering pace, two sets of data released on Monday showed.
According to the Nikkei Markit India Manufacturing PMI, the manufacturing sector grew at its fastest pace in four months in July due to rise in new orders, though inflationary pressures continued.
The PMI index — a composite indicator of manufacturing performance — rose to 51.8 in July from 51.7 in June. A reading above 50 denotes expansion.
Meanwhile, the commerce ministry said core sector grew at 5.8% in June, against 2.8% in May. Growth during the April-June quarter stood at 5.4%.
Supported by greater demand from both domestic and external markets, new business orders rose at the fastest pace since March. Although factory output also expanded at the fastest rate since March, businesses refrained from creating jobs.
“With inflation rates lower than average, it wouldn’t be surprising to see the RBI loosening the monetary policy at its August meeting, to encourage investment,” said Pollyanna De Lima, author of the Nikkei report.