Why high input costs could derail India's manufacturing growth story
3 years, 9 months ago

Why high input costs could derail India's manufacturing growth story

India Today  

The IHS Markit India Manufacturing Purchasing Managers’ Index slipped to a seven-month low of 55.4 in March, from 57.5 the previous month, indicating a break in the growth momentum, owing to factors such as decline in factory output, drop in employment due to Covid restrictions and lack of demand. Pollyanna De Lima, economics associate director at IHS Markit, said in a note: ‘After starting 2021 on a stronger footing than it ended 2020, the manufacturing sector lost further growth momentum in March.’ The note further said, ‘Survey participants indicated that demand growth was constrained by the escalation of the Covid-19 pandemic, while the rise in input buying was curtailed by an intensification of cost pressures.’ Budget 2021-22 increased customs duties on a slew of products to give a boost to the Aatmanirbhar Bharat Abhiyaan. “Our custom duty policy should have the twin objectives of promoting domestic manufacturing and helping India get onto the global value chain and export better. In a letter dated February 19 to Union textiles minister Smriti Irani, the Tirupur Exporters Association has raised concerns about the increase in yarn prices and explained how it’s hurting the competitiveness of textile players.

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History of this topic

India’s retail inflation eases to 5.48%, industrial production rises to 3-month high
4 weeks ago

India’s retail inflation eases to 5.48%, industrial production rises to 3-month high

Firstpost  

These positive developments come as India grapples with a seven-quarter low in real GDP growth, which fell to 5.4 per cent in the July-September period, down from 6.7 per cent in the previous quarter In positive developments for the Indian economy, the country’s retail inflation cooled, while industrial production saw an uptick, according to recently released data. Food inflation eases …

India factory growth softened in Nov on high inflationary pressures
1 month, 1 week ago

India factory growth softened in Nov on high inflationary pressures

Deccan Chronicle  

India's factory growth cooled in November yet maintained a strong pace, leading to significantly improved optimism despite demand easing a bit due to higher price pressures, a business survey found.Asia's third-largest economy expanded a lacklustre 5.4% in the July-September quarter, official data showed on Friday, led by tepid growth in manufacturing and consumption. The rate was much lower than the …

Unchecked 'sticker shock' from inflation can hurt manufacturing and economy, RBI says
1 month, 2 weeks ago

Unchecked 'sticker shock' from inflation can hurt manufacturing and economy, RBI says

Hindustan Times  

The Reserve Bank of India said if inflation is allowed to run unchecked, it can undermine the prospects of India's economy, especially for industry and exports. The Reserve Bank of India seal is pictured on a gate outside the RBI headquarters in Mumbai, India, February 2, 2016 This comes after the headline consumer price index inflation rose above the upper …

Higher fibre prices worry apparel, home textile makers as demand improves
1 month, 3 weeks ago

Higher fibre prices worry apparel, home textile makers as demand improves

Deccan Chronicle  

Chennai: Apparels and home textiles are hopeful about robust demand in the international market, especially the US. Similarly, home textiles segment is set to grow by 6-8 per cent this fiscal, riding on resilient demand from the US and expansion in the domestic market, finds Crisil. Home textiles derive 70-75 per cent of its revenue from exports and the US …

India’s Industrial Output Grows 3.1 Percent in September Amid Rising Inflation
1 month, 3 weeks ago

India’s Industrial Output Grows 3.1 Percent in September Amid Rising Inflation

Deccan Chronicle  

NEW DELHI: India’s industrial production witnessed a significant expansion by 3.1 per cent in September from a negative territory in August 2024 at 0.1 per cent, mainly due to improvement in the manufacturing sector. While headline retail inflation rose to 14-month high of 6.21 per cent in October from 5.49 per cent in the preceding month mainly due to higher …

Retail inflation hits 14-month high, rises to 6.21 per cent in October
1 month, 4 weeks ago

Retail inflation hits 14-month high, rises to 6.21 per cent in October

India TV News  

India’s retail inflation surged to a 14-month high of 6.21% in October, exceeding the Reserve Bank of India’s target range. India’s Index of Industrial Production showed a positive shift, expanding by 3.1% in September compared to a 0.1% contraction in August. According to data from the Ministry of Statistics and Programme Implementation, key sectors such as mining, manufacturing, and electricity …

India's Retail Inflation at 3.65 Percent in August; Industrial Output Grows by 4.8 Percent in July
3 months, 3 weeks ago

India's Retail Inflation at 3.65 Percent in August; Industrial Output Grows by 4.8 Percent in July

Deccan Chronicle  

New Delhi: India’s headline retail inflation for the month of August 2024 stood at 3.65 per cent as compared to 3.6 per cent in July, while it was 6.83 per cent a year ago. India’s industrial output growth also recorded a growth of 4.8 per cent in July 2024, two separate government data showed on Thursday. Meanwhile, India’s industrial production …

India’s industrial output grows 4.8% in July
3 months, 4 weeks ago

India’s industrial output grows 4.8% in July

The Hindu  

India’s industrial output growth rose 4.8% in July, the second-slowest pace in the financial year 2024-25, from an upgraded 4.7% growth in June, even as mining and electricity growth slowed, and non-consumer durables’ production slipped a sharp 4.4%, marking the third contraction in four months. Manufacturing output growth picked up to 4.6% in July, from 3.2% in June, and was …

​Election overhang: The Hindu Editorial on economic activity
5 months ago

​Election overhang: The Hindu Editorial on economic activity

The Hindu  

Production in India’s eight core infrastructure sectors remained largely dampened by the impact of a slowdown in state spending on public works in June, when the general election ended in the early part of the month leading to the formation of a new government at the Centre. Provisional data on the Index of Eight Core Industries released by the Commerce …

Reduce tariffs on manufacturing inputs for electronics: ICEA
6 months, 1 week ago

Reduce tariffs on manufacturing inputs for electronics: ICEA

The Hindu  

The Indian Cellular & Electronics Association, which represents domestic electronics manufacturers, called on Tuesday for a reduction of import duties as a key Union budget demand. Pankaj Mohindroo, the ICEA’s President, argued against the relatively high tariffs India imposes on manufacturing inputs — China and Vietnam’s tariffs apply on fewer components and are of lower rates — saying that domestic …

India lucrative for steelmakers because of higher infra spending, economic growth
6 months, 2 weeks ago

India lucrative for steelmakers because of higher infra spending, economic growth

Hindustan Times  

Despite a slowdown in exports and increasing Chinese steel output impacting India's share in the markets, steel makers in the country are optimistic about the domestic demand. The case with steel exports Indian exports have been affected by a variety of reasons in the recent past including low production due to scheduled maintenance shutdowns, preference for the domestic market over …

India's industrial output's year-on-year growth increases to 5% in April 2024
6 months, 4 weeks ago

India's industrial output's year-on-year growth increases to 5% in April 2024

Hindustan Times  

The Index of Industrial Production grew by 5% for April 2024, compared to 4.6% growth during the same month of the previous year. IIP tracks activity in manufacturing, mining, and electricity generation IIP shows the performance of the industrial sector. The IIP figure for April 2024 stood at 147.7 compared to 140.7 in the same month last year, according to …

India's CPI Inflation Eases To 12-Month Low of 4.75% In May 2024; IIP Grows 5% In April
6 months, 4 weeks ago

India's CPI Inflation Eases To 12-Month Low of 4.75% In May 2024; IIP Grows 5% In April

News 18  

Retail Inflation in May 2024: India’s CPI inflation in May 2024 eased to a 12-month low of 4.75 per cent, according to official data released on Wednesday, June 12. IIP: India’s Industrial Production Grows 5% in April 2024 According to separate official data released on Wednesday, India’s industrial production grew 5 per cent in April this year mainly due to …

India’s Business Activity Hits 14-Year High in May
7 months, 2 weeks ago

India’s Business Activity Hits 14-Year High in May

Deccan Chronicle  

New Delhi: With the significant growth in the services sector, India's business activity witnessed a robust expansion in May this year, recording the third strongest reading in close to 14 years. “The flash services PMI index hit a 4-month high of 61.4 this month, up from April's 60.8, while the preliminary manufacturing PMI showed a tad weaker growth than last …

India’s wholesale inflation hit a 13-month high in April
7 months, 3 weeks ago

India’s wholesale inflation hit a 13-month high in April

The Hindu  

Inflation in India’s wholesale prices rose to a 13-month high of 1.26% in April, from 0.53% in March, owing to an uptick in food inflation and a 1.4% year-on-year rise in fuel and power prices after several months of deflation. The price rise in primary food articles picked up from 6.88% in March to a four-month high of 7.74% in …

India's Index of Industrial Production growth slows to 4.9% as mining sector sees decline
7 months, 4 weeks ago

India's Index of Industrial Production growth slows to 4.9% as mining sector sees decline

Deccan Chronicle  

New Delhi:With the poor performance, mostly in the mining sector, India’s industrial output slowed marginally to 4.9 per cent in March this year as compared to the previous month. The factory output measured in terms of the index of industrial production or IIP was 5.6 per cent in February 2024, while it saw a growth of 1.9 per cent in …

Industrial output growth slows to 3.8% in January
9 months, 4 weeks ago

Industrial output growth slows to 3.8% in January

The Hindu  

India’s industrial output growth slowed to 3.8% in January, from an upgraded uptick of 4.24% in December, with the manufacturing sector’s growth slowing to 3.2% from 4.5% a month ago and consumer non-durables slipping into contraction for the second time in three months. Consumer durables production jumped 10.9%, the highest growth in three months, but gained from base effects as …

India’s manufacturing PMI inched up to 56.9 in February
10 months, 1 week ago

India’s manufacturing PMI inched up to 56.9 in February

The Hindu  

India’s manufacturing sector continued its recovery in February from an 18-month low in December, with production levels and sales rising at the fastest pace in five months, as per the seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index. New export orders grew at the highest pace in 21 months, but employment levels changed little as firms felt existing staff strengths …

Industrial growth hit 14-month high of 10.3% in August
1 year, 2 months ago

Industrial growth hit 14-month high of 10.3% in August

The Hindu  

India’s industrial output surged at a 14-month high pace of 10.3% in August, from a 6% rise in July, aided by favourable base effects from last year when production levels had contracted 0.7% and the best manufacturing performance since this April. Consumer goods’ production reflected a mixed trend, although durables’ output grew for the first time in three months, at …

Retail Inflation Falls To 3-Month Low of 5.02% In September, Industrial Production Up 10.3% In August
1 year, 2 months ago

Retail Inflation Falls To 3-Month Low of 5.02% In September, Industrial Production Up 10.3% In August

News 18  

India’s retail inflation in September 2023 declined to a three-month low of 5.02 per cent, mainly due to easing food prices, according to the latest official data released on Thursday. According to the data released by the National Statistical Office, the inflation in the food basket came down to 6.56 per cent in September from 9.94 per cent in the …

Manufacturing PMI eased to 5-month low in September
1 year, 3 months ago

Manufacturing PMI eased to 5-month low in September

The Hindu  

India’s manufacturing sector activity moderated to a five-month low in September with new orders slowing down, as per the seasonally adjusted S&P Global India Manufacturing Purchasing Managers’ Index, which eased to 57.5 from 58.6 in August. While inflation in input costs eased to the lowest in over three years, firms raised output charges at a sharper pace than the long-run …

India’s global exports in labour-intensive sectors declined in last 5 years: FIE
1 year, 3 months ago

India’s global exports in labour-intensive sectors declined in last 5 years: FIE

Live Mint  

With India experiencing a decline in global market share across segments during the last five years, the labour-intensive export sectors such as apparels, marine products, plastics, and gems and jewellery are showing a "troubling pattern", news agency PTI quoted FIEO report as saying. "An analysis of sector-wise export performance for the last five years reveal the troubling pattern that India …

India's Manufacturing PMI Jumps to 58.6 in August, Hits 3-Month High
1 year, 4 months ago

India's Manufacturing PMI Jumps to 58.6 in August, Hits 3-Month High

News 18  

India’s factory growth accelerated at the fastest pace in three months in August, driven by strong growth in new orders and output, according to a private survey that however also showed job creation was at a four-month low. The Manufacturing Purchasing Managers’ Index, compiled by S&P Global, jumped to 58.6 last month from 57.7 in July, the highest since May …

Industrial production witnesses growth of 3.7 per cent in June 2023: NSO data
1 year, 4 months ago

Industrial production witnesses growth of 3.7 per cent in June 2023: NSO data

India TV News  

A recent data released by the National Statistical Office revealed that India’s industrial production rose by 3.7 per cent in June. According to the official data, the factory output measured in terms of the Index of Industrial Production grew by 12.6 per cent in June 2022. The data released by the NSO also showed that the manufacturing sector’s output increased …

Factory item prices must cool for lasting inflation relief
1 year, 5 months ago

Factory item prices must cool for lasting inflation relief

Live Mint  

India’s retail inflation in June was 4.8%, as per a recent data release. Retail inflation is the year-on-year change in the consumer price index, which is a weighted average price level for food, fuel, manufacturing and service items. There is one lesson to be drawn from India’s inflation-targeting experience and especially high inflation post the covid pandemic: the prices of …

India’s industrial production up 4.2% in April from 1.1% in March
1 year, 6 months ago

India’s industrial production up 4.2% in April from 1.1% in March

Live Mint  

The index of industrial production in India rose 4.2 per cent on an annual basis in the month of April from 1.1 per cent in March and 6.7 per cent in April 2022, according to data released by the Ministry of Statistics and Programme Implementation on Monday. India's industrial production growth slipped to a five-month low of 1.1 per cent …

India's Manufacturing PMI In April Hits 4-Month High On Robust Demand
1 year, 8 months ago

India's Manufacturing PMI In April Hits 4-Month High On Robust Demand

News 18  

India’s factory activity expanded at its quickest pace in four months in April, driven by solid growth in new orders and output, a private survey showed on Monday, signalling resilient demand and an encouraging outlook. Besides seeing the strongest inflow of new work in 2023 so far, capacities were expanded through job creation, input buying was lifted.” Both new orders …

India's Industrial Production: Rises by 4.3 per cent in December
1 year, 10 months ago

India's Industrial Production: Rises by 4.3 per cent in December

India TV News  

India's Industrial Production: National Statistical Office on Friday released data showing a positive hike in India's Industrial Production in December. According to the official data of NSO, India's industrial production rose by 4.3 per cent in December. Factory output measured in terms of the Index of Industrial Production grew by 1 per cent in December 2021. The data released by …

India’s economic growth to slow to 7%, government forecasts
2 years ago

India’s economic growth to slow to 7%, government forecasts

Al Jazeera  

India remains a relative ‘bright spot’ in the world economy, but weak exports are expected to hamper its growth. India’s government expects economic growth to slow in the financial year that ends on March 31 as pandemic-related distortions ease and pent-up demand for goods levels out going into 2023. “A broad-based consumption recovery, therefore, is still some distance away.” ‘Bright …

Indian manufacturing sector and the great transformation under Narendra Modi
2 years ago

Indian manufacturing sector and the great transformation under Narendra Modi

Firstpost  

With the vision of transforming India into a manufacturing hub, our government under the leadership of Prime Minister Narendra Modi took concrete steps towards improving various business parameters In 2014, when Prime Minister Narendra Modi took the reins of our nation, India had been tagged as one of the so-called “Fragile Five” nations alongside Indonesia, Brazil, Turkey, and South Africa, …

Mid-course changes in gas pricing to delay investments: Reliance
2 years, 3 months ago

Mid-course changes in gas pricing to delay investments: Reliance

The Hindu  

Billionaire Mukesh Ambani-led Reliance Industries has told a government-appointed panel reviewing gas pricing that any 'retrograde' move to artificially cap rates will add to fiscal policy instability, delays investment and dent India's attempt to become Atmanirbhar in fuel production. The sources said Reliance told the panel that doubling India's production from current levels to cut rising imports and meet the …

Retail inflation inches up to 7% in August on costlier food items
2 years, 3 months ago

Retail inflation inches up to 7% in August on costlier food items

India TV News  

Highlights Retail inflation inches up to 7 per cent in August from 6.7 per cent in July Industrial production grew to 2.4 per cent, government data showes Mining output contracted 3.3 per cent while power generation increased 2.3 per cent Inflation: The retail inflation inched upto 7 per cent in August from 6.7 per cent in July, while Industrial production …

India has managed inflation better than developed countries amid global headwinds: Goyal
2 years, 6 months ago

India has managed inflation better than developed countries amid global headwinds: Goyal

Live Mint  

India has managed to maintain its inflation at a reasonable level compared to developed countries at a time when global shortage of certain commodities has push up the world inflation, said commerce and industry minister Piyush Goyal at an industry event in Tirupur in Tamil Nadu. "For most of the items, we have been able to maintain the prices much …

Strong infra crucial for growth
2 years, 6 months ago

Strong infra crucial for growth

The Hindu  

The Indian government launched its ‘Make in India’ initiative in September 2014 to focus on the growth of the manufacturing sector. India’s weak infrastructure continues to be one of the biggest challenges for the manufacturing sector. India has come a long way in developments like digitalisation across state boundaries, building inter-connected expressways, better power facilities etc., but we are still …

ACs to become 3% to 4% costlier, buy now if you are still planning
2 years, 7 months ago

ACs to become 3% to 4% costlier, buy now if you are still planning

India TV News  

ACs to become expensive: Hit by multiple factors such as rising fuel costs and global component shortages, Indian AC manufacturers said on Friday that they have no alternative but to pass off the burden to the consumers who will have to pay at least three to four per cent more on ACs next month. "The rise in cost of raw …

DC Edit | No relief from rising prices
2 years, 8 months ago

DC Edit | No relief from rising prices

Deccan Chronicle  

The Consumer Price Index — also called retail inflation — in India shot up to a 17-month high of 6.95 per cent in March 2022. Though the inflation remained above six per cent for the last three months, the RBI preferred to support economic growth by restraining itself from increasing interest rates to curb inflationary expectations. Unlike in advanced economies …

India's Factory Activity Grows at Slower Pace, PMI Manufacturing Falls to 54 in March
2 years, 9 months ago

India's Factory Activity Grows at Slower Pace, PMI Manufacturing Falls to 54 in March

News 18  

India’s factory activity expanded at a slower pace in March as rising prices meant new orders and output grew at their weakest rate since September, according to a survey released on Monday that also showed optimism at a two-year low. “Manufacturing sector growth in India weakened at the end of fiscal year 2021/22, with companies reporting softer expansions in new …

Retail inflation mounts to 6.07%
2 years, 9 months ago

Retail inflation mounts to 6.07%

The Hindu  

India’s retail inflation inched up to an eight-month high of 6.07% in February from 6.01% in January, with rural India experiencing a sharper price rise at 6.38%. Food and beverages Food and beverages inflation hit a 15-month high and the rising prices of edible oils are likely to pose a challenge in coming months, ICRA chief economist Aditi Nayar pointed …

India’s manufacturing sector records highest production growth in November after nine months
3 years, 1 month ago

India’s manufacturing sector records highest production growth in November after nine months

The Hindu  

India’s manufacturing sector recorded the highest production growth in nine months in November, as per the survey-based IHS Markit India Manufacturing Purchasing Managers’ Index, which rose to 57.6 from 55.9 in October. The November PMI signals the strongest improvement in the health of the manufacturing sector for ten months, with factory orders rising for the fifth successive month at the …

PMI for India’s manufacturing sector rises in September
3 years, 3 months ago

PMI for India’s manufacturing sector rises in September

The Hindu  

India’s manufacturing sector recorded an uptick in September as per the Purchasing Managers' Index, which rose from 52.3 in August to 53.7 in September, even as price pressures intensified due to raw material shortages and high fuel and transport costs. This marks the third straight month of expansion in manufacturing activity, with consumer goods showing the highest growth in output, …

Explained: 4 factors that could disrupt India's economic recovery
3 years, 9 months ago

Explained: 4 factors that could disrupt India's economic recovery

India Today  

A fresh set of hurdles could once again hurt the Indian economy after it staged a better-than-expected recovery following the Covid-19 crisis. Several brokerages had estimated the country’s economy to register over 10 per cent GDP growth in FY22 but some fresh challenges could disrupt growth in the near-term. Read | India's GDP growth turns positive, but experts caution against …

India's Manufacturing Sector Activity Strengthens in December, Says Survey
4 years ago

India's Manufacturing Sector Activity Strengthens in December, Says Survey

News 18  

India’s manufacturing sector activity strengthened in December, with manufacturers stepping up production and input buying amid efforts to rebuild their inventories following business closures earlier in the year, a monthly survey said on Monday. The seasonally adjusted IHS Markit India Manufacturing Purchasing Managers’ Index was at 56.4 in December, a tick higher than November’s reading of 56.3 and above the …

Firms brace for cost inflation as commodity prices catch up
4 years ago

Firms brace for cost inflation as commodity prices catch up

Live Mint  

India Inc. needs to gear up for a gradual increase in raw material costs due to the recent rise in some global commodity prices. In the past two quarters, companies cut back on employee and “Raw material forms a major part of the cost structure in the P&L. Q-o-Q, higher raw material cost seen across all sectors,” research house PhillipCapital …

High food prices at heart of India’s inflation problem
4 years, 2 months ago

High food prices at heart of India’s inflation problem

Live Mint  

India’s Consumer Price Inflation has been above the RBI-mandated 2-6% for 8 out of the 9 previous prints. Consumer Price Inflation is estimated, first of all, by constructing a representative ‘basket’ of goods and services. However, India’s inflation has historically been driven by high food prices. Conventional theory states that higher wage growth pushes inflation and EMs experience higher wage …

CPI inflation surges, factory output shrinks
4 years, 2 months ago

CPI inflation surges, factory output shrinks

Live Mint  

India’s retail inflation accelerated to 7.34% in September, remaining well above the central bank’s targeted range for the sixth consecutive month, as food prices rose. Retail prices continue to soar above the central bank’s 2-to-6% target band because of disruptions in supplies of food, especially vegetables, amid the pandemic and higher fuel prices. “Amid the unpalatable headline and food inflation …

Growth of Manufacturing Sector is Key to Creation of Jobs in India, Says Maruti Suzuki Chairman
4 years, 4 months ago

Growth of Manufacturing Sector is Key to Creation of Jobs in India, Says Maruti Suzuki Chairman

News 18  

The coronavirus pandemic is creating a greater awareness among people in India that this is the time to make radical changes and take steps for faster growth of the manufacturing sector and the economy, Maruti Suzuki India Chairman R C Bhargava said on Wednesday. Addressing shareholders at the company's annual general meeting, he said the key to grow the economy …

Softening Demand Drags Indian Factory Growth to Two-year Low in October: Report
5 years, 2 months ago

Softening Demand Drags Indian Factory Growth to Two-year Low in October: Report

News 18  

Bengaluru: India’s factory activity growth hit a two-year low in October as new orders and output rose at a slower pace, dragging business confidence to its weakest since early 2017, a survey showed on Friday, suggesting more policy easing is on the cards. “PMI data for October showed a continuation of manufacturing sector weakness in India, with sales growth softening …

Economic slowdown: Manufacturing growth sluggish at 7%, share in GDP stagnant at 16%; urgent need of more than just a policy overhaul
5 years, 3 months ago

Economic slowdown: Manufacturing growth sluggish at 7%, share in GDP stagnant at 16%; urgent need of more than just a policy overhaul

Firstpost  

With the RBI softening its policy rates for the fourth consecutive time in 2019, and Banks expected to pass on these rate reductions, there is hope for uptick in credit flow to key manufacturing industrie Indian economy has been the fastest growing economy, as per major multilateral institutions. Though manufacturing forms an integral part of the industrial sector, its sectoral …

Jobs-intensive sectors slump
5 years, 3 months ago

Jobs-intensive sectors slump

Deccan Chronicle  

Hyderabad: The industrial production in India has reportedly grown by 4.3 per cent in July 2019, according to government data released Thursday. Though the industrial production has slowed considerably compared to 6.5 per cent growth in July 2018, the headline growth number has remained positive. According to the numbers released by the ministry of statistics and programme implementation, the textiles …

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