India s manufacturing sector growth weakens in January

India-s manufacturing sector growth slowed in the month of January due to lower orders and issues in power supply. The HSBC compiled Purchasing Managers Index (PMI), an important indicator to judge the performance of the manufacturing sector, dropped marginally to 53.2 in January compared to 54.7 in December. This is the lowest PMI rating in last 3 months. Any reading higher than 50 indicates growth in the sector.

Though it is the lowest PMI rating in last 3 months, it still indicates strong growth in Indian manufacturing sectors. The recent interest rate cut by the RBI is expected to boost the manufacturing sector in the coming months as the sector has been struggling with high interest rate and lower economic growth for more than a year.