There has been a decline in manufacturing growth amid rising inflation in the country. Manufacturing growth reached its weakest level in 11 months in November. Due to increasing inflation, people are purchasing less. Manufacturing growth has declined due to decline in domestic demand.
Purchasing Managers’ Index remained at the level of 56.6 in the month of November. Which is less than the month of October. The decline in domestic demand is believed to be the reason behind the decline in PMI levels. Due to increase in inflation, people reduced their purchases. Due to low demand for products, the manufacturing sector has also declined. However, the PMI has remained above its long-term average for the last three years, reflecting the steady pace of growth in India’s manufacturing sector.
Increase in export demand
There has been a decline in manufacturing growth due to decline in domestic demand in the month of November. But meanwhile export demand has increased. Despite domestic challenges, international demand has rebounded and new export orders reached a four-month high in November. Indian manufacturers have said that export demand will increase from markets including Bangladesh, China, Italy, Japan and America.