New Delhi: After slipping into contraction for the first time in 11 months in June, India’s manufacturing activity posted the strongest growth in Covid-hit three months in July, with states easing localised pandemic restrictions. All the manufacturing activities recovered from a major fall in June, as output, new orders, exports, quantity of purchases and input stocks all returned to growth territory.
According to the seasonally adjusted monthly IHS Markit India Manufacturing Purchasing Managers’ Index (PMI) survey, the index moved back above the critical 50.0 threshold in July, moving up from 48.1 to 55.3.
“Output rose at a robust pace, with over one-third of companies noting a monthly expansion in production,” Pollyanna De Lima, economics associate director at IHS Markit, said.
Exports up 48% in July to $35 bn
India’s exports grew by 47.19 per cent to $35.17 billion, aided by healthy growth in shipments of petroleum, engineering, and gems and jewellery, according to the provisional data from the commerce ministry. Imports during the month rose by 59.38 per cent to $46.40 billion, leaving a trade deficit of $11.23 billion.