The activities in the Indian manufacturing industry are surging at a phenomenal rate. During September 2009, the manufacturing industry in India managed to recover from its 5-month dip in August on the back of high domestic demand and robust factory orders.

According to a survey conducted on 500 companies it was observed that the HSBC Market Purchasing Managers' Index (PMI) surged from 53.2 in August to 55 in September this year. According to experts, the index has risen above 50. The rise in the index reflects that the Indian manufacturing industry is unlikely to witness a decline for the next 6 months. Previously, it was observed that the industry experienced a decline from March 2008 till the next 5 consecutive months. The industry experienced a drop of 44.4 in December 2008.

“Most manufacturers are overwhelmed by the PMI as it has not only picked up pace but has also managed to recover from its previous losses. Therefore, manufacturers have been boosted by the rise in the index rate and they are aiming to maintain their position in the global market,” says J Das, MD of GN Tools Private Limited, a small-sized Tool manufacturing company in Haryana.

Road Ahead

Although the complete effects of the monetary and fiscal stimulus is yet to uplift the industry, there has been a surge in oil and gas output. However, there should be development in the world trade cycle that is likely to bring about an overall development in the sector. Therefore, this will not only aid the industry to maintain a stable position in the global market but will also help the manufacturing industry to reach new horizons.

In comparison to last month, the manufacturing industry has witnessed an increase in the new orders index, which has soared from 56.2 in August to 58.3 in September. “Although there has been a drop in the orders since the last 4 months, the present rise in the new orders has changed the scenario of the Indian manufacturing industry,” says L Baura, Manager of GS Engineering Limited, a mid-sized auto manufacturing company in Raipur.

Although there has been a minimal drop in the export orders, the high demand in the domestic market has helped the Indian manufacturers to recover from their losses.

Sabrina Mitchell