India’s manufacturing growth accelerates in October from 10-month low growth in the previous month of September due to new orders and lowered pricing pressures. The HSBC compiled manufacturing purchasing managers’ index (PMI), an important parameter to judge the performance of the sector, increased marginally to 52.9 in October compared to 52.8 in September. Any reading higher than 50 indicates growth in the respective sector and reading of 52.9 indicates strong growth.
Recently India’s core sector has registered a strong growth of 5.1% in the month of September which indicates rebound of growth in the manufacturing sector. Also RBI has recently cut CRR by 25 bps to infuse more liquidity in the system which it has still kept the interest rates unchanged.