India’s economy surges further ahead in February
- IBEF
- February 23, 2024
In February, the Indian economy displayed continued strength, with accelerations observed in the manufacturing and services sectors. The HSBC Flash India Composite Purchasing Managers’ Index (PMI), compiled by S&P Global, rose to 61.5, marking a five-month high for manufacturing and a seven-month high for services. This places India among the fastest-growing major economies, surpassing the 50-point threshold distinguishing expansion from contraction. According to HSBC's report, the positive momentum is attributed to buoyant demand, technology investments, efficiency gains, expanded clientele, and favorable sales conditions.
The growth trend in manufacturing and services follows robust data showing a 7.6% expansion in the Indian economy in the second quarter. Increased government spending, strong manufacturing, mining, and construction performance, along with a resilient services sector, contributed to this growth. In December, the Reserve Bank of India revised its growth forecast for the current fiscal year to 7%, up from the initial projection of 6.5%, owing to higher-than-anticipated growth in the first two quarters. The HSBC Flash Services PMI for February was 62, up from 61.2 in January, while the Manufacturing PMI was 56.7, highlighting the faster-paced economy. The rise in the Composite PMI suggests optimism for growth prospects, even as inflation remains within the RBI's tolerance range, and business confidence, though slightly lower in February, continues to indicate robust optimism.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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