According to the latest survey done by IHS Markit, India’s manufacturing industry started the year 2021 on a strong note with Manufacturing Purchasing Managers Index (PMI) for the month of January at 57.7, reflecting the strongest improvement in three months. Manufacturing PMI in December 2020 and November 2020 was at 56.4 and 56.3, respectively.

According to the Survey, in response to faster expansions in total sales and new export orders, companies scaled up production at the quickest pace in three months. While employment fell further, job shedding moderated. Sustained sales growth supported a further upturn in manufacturing sector output in January. The rise in production was the sixth in successive months and the quickest since last October. Firms noted a faster expansion in new business inflows at the start of the year, the quickest in three months. Anecdotal evidence pointed to higher sales to new and existing clients as well as the securing of bulk orders.

New orders and output rose across each of the three broad areas of the manufacturing sector. For both measures, rates of expansion picked up at consumer and capital goods firms but eased at intermediate goods makers.