According to a recent report, India’s manufacturing activity in March reached a three-month high, despite a resurgence of job cuts. The report, based on a survey of purchasing managers in the manufacturing sector, showed that the Purchasing Managers’ Index (PMI) for manufacturing rose to 55.4 in March, up from 57.5 in February. A PMI reading above 50 indicates expansion in the sector, while a reading below 50 indicates contraction.
The survey also revealed that there was an increase in new orders, production and exports, all of which contributed to the expansion in manufacturing activity. However, the rate of job shedding increased in March, marking the first time in six months that companies have cut jobs.
Experts suggest that the job cuts may be a result of the second wave of COVID-19 infections in India, which has prompted some states to reimpose lockdown measures. The lockdowns have disrupted supply chains and reduced demand for goods, leading to a slowdown in business activity.
Despite the job cuts, the report suggests that the overall outlook for the manufacturing sector in India remains positive, with firms optimistic about future growth prospects. The Indian government has also taken steps to boost the sector, such as increasing spending on infrastructure projects and providing incentives for manufacturing firms to invest in the country.
Overall, the report indicates that while the second wave of COVID-19 may pose challenges for the Indian economy, the manufacturing sector has shown resilience and is well-positioned for future growth.
