India’s manufacturing Purchasing Manager’s Index (PMI) for March was 51.8, down from 54.5 last month. Growth in manufacturing activity was at a slowest pace since the last four months. According to IHS Markit, manufacturing was hurt by supply-chain disruption due to the COVID-19 outbreak.
The ongoing 21-day nation-wide lockdown is expected to further impact business activities in India. Manufacturing in India failed to pick up despite Reserve Bank of India’s fiscal and monetary support packages.
PMI is lowest since November but remains above the 50-mark which indicates some growth. Indian manufacturing was largely protected from the negative impact of COVID-19 in March despite some sectors facing disruption. Fewer new exports orders were received by Indian manufacturers indicating weak demand from overseas markets. Business sentiments also plunges during the months, said the report.