"INDIA'S MANUFACTURING GROWTH EASES IN MAY, GLOBAL SALES SURGE”

Why in the news?

India’s manufacturing sector growth eased in May for the second consecutive month but remained in expansion mode, with the HSBC India Manufacturing PMI falling from 58.8 in April to 57.5, signaling a slower but substantial improvement.
Global sales surged to the strongest level in over 13 years, indicating robust demand, despite a slowdown in new orders and output growth attributed to reduced working hours and rising production costs amidst intensive heatwaves.

source: researchgate

About India’s Manufacturing Sector:

Manufacturing sector is a key driver of India’s economic growth, fueled by automotive, engineering, chemicals, pharmaceuticals, and consumer durables.
Contributes 17% to GDP, employs over 27.3 million workers, and aims to reach 25% of the economy’s output by 2025.
India targets US$ 1 trillion in exports by 2030, positioning itself as a global manufacturing hub.
FY 2023-24 saw manufacturing growth at 6%.
Annual manufacturing exports hit US$ 447.46 billion in FY23, up by 6.03%.

About Purchasing Managers’ Index (PMI):

It is an economic indicator derived from monthly surveys of various companies, measuring activity at the purchasing or input stage.
Two types: Manufacturing PMI and Services PMI, reflecting trends in both sectors.
PMI above 50 indicates business activity expansion, below 50 signifies contraction.
Significance: Considered a leading indicator of economic activity, released earlier than official data on industrial output and GDP growth.

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