India’s Economic Recovery Starts – Factory Output Increases 1st Time In 5 Months
India’s Chief Economic Advisor has declared that Indian economy’s recovery process has started, and that it’s a V-shaped recovery.
Meanwhile, India’s overall factiry output has increased for the 1st time in 5 months, which means that more products are being made, sold and exported.
Here are more details.
Chief Economic Advisor: India’s Economic Recovery Has Started
KV Subramanian, who is the Chief Economic Advisor (rank Secretary to the Government of India) has stated that India’s economic recovery has started, and things will go uphill from here.
Based on various critical economic pointers and trends, he has declared that a V-shaped recovery process is underway, across all sectors.
He said, “What is important to keep in mind is that India is experiencing a V-shaped recovery. The core sector output, which had declined 38% in April, has periodically regained momentum and in July, it was 9.6% after recording 22% and 13% in May and June.”
He also shared example of railway freight, which in July month was 95% of the last year’s capacity, and in August, it was 6% more, compared to last year, for the same period.
As per him, Agriculture sector too witnessed an increase of 3.5% production in the last couple of months, and overall, it’s a good sign.
You can find the full interview here.
Factory Output Expands 1st Time In 5 Months
As per the IHS Markit report, India’s factory output has increased first time in last 5 months.
New orders, production and customer demand has increased across major manufacturing units, across India, and right now at the highest peak since February, 2020.
Shreeya Patel, Economist at IHS Markit said,“August data highlighted positive developments in the health of the Indian manufacturing sector, signalling moves towards a recovery from the second quarter downturn. The pick-up in demand from domestic markets gave rise to upturns in production and input buying,”
Purchasing Managers’ Index or PMI has increased to 52 in August, compared to 46 in July, and it’s expected that PMI will continue to rise in September as well.
Main challenges in manufacturing sector includes longer delivery time, and scarcity of employees, who have went back to their native places, and taking time to return.
We will keep you updated, as more details come in.