India's manufacturing sector growth drops to 16-month low in March

India's manufacturing sector growth dropped to 16-month low in March as power outages affected production activity severely in the same month. The HSBC compiled India Manufacturing Purchasing Managers' Index (PMI), an important parameter to judge the performance of the sector dropped to 52 in March compared to 54.2 in February. Any reading higher than 50 indicates growth in the respective sector.

India-s manufacturing sector has been consistently growing in last couple of quarters in spite of global slowdown and dismal global economic outlook. But the growth slowing down to 16-month low level is really disappointing for the Indian economy. India-s economic condition now worsens with record 15-quarter low GDP growth of 4.5% in last quarter, almost flat IIP growth, negative core sector growth and record high current account deficit of 6.7% of GDP.