The effect of 'Modinomics' on the economy, after GDP, now here is good news

After the GDP figures for the country's Modi government, good news has been received on the front of the manufacturing sector. The figures of the manufacturing sector for the month of August have been seen for the second time in three years. The main reason for which is being attributed to the increase in new orders and output.

They are not engaged on the Indian economy just like that. On the basis of Modinomics, the economy of the country is running with speed, one of its wheels is in the form of manufacturing sector. Which has presented the best figures for the second time in three years in the month of August. A day earlier, the GDP figures for the June quarter were presented and today the manufacturing data came to the fore, which once again showed why India's pace is so fast? The PMI figure for the month of August which has come out is saying a lot in itself. Due to the increase in new orders and output, there has been an increase in the manufacturing sector.

The sector will strengthen the GDP of the second quarter

According to data released on Friday, the S&P Global India Manufacturing Purchasing Managers' Index (PMI) increased to 58.6 in August compared to 57.2 in July. Poliana de Lima, Economics Associate Director of S&P Global Market Intelligence, said that the increase in new orders and production shows that this sector is going to make a strong contribution to the economic growth in the second quarter. De Lima further said that the PMI results for India have presented a vibrant picture of the country's manufacturing scenario in August.

Manufacturing sector was weak in the first quarter

Data released earlier this week showed that India's economic growth in the first quarter reached a four-quarter high of 7.8 percent as activity in the service sector increased. The manufacturing sector grew by only 4.7 percent in the first quarter, which was 6.1 percent in the same period last year. Strong demand pushed new orders to the fastest pace since January 2021, helping better exports.

Shopping level highest in 12 years

According to the report, there has been an increase in new export orders not only in the seventeenth half of the second quarter. In fact, since November 2022, the maximum increase was also seen. The level of procurement reached the fastest level in almost 12 years, even as input costs increased. The increase in inflation or selling price was not seen as fast as the input cost. Companies registered growth in cotton, food items, rubber, steel and machinery spare parts.

De Lima said that the challenges have increased continuously due to increase in input costs. Inflation has also affected next year's scenario. Due to inflation, the level of positive sentiment is at a three-month low. Job generation has also reached its lowest level in four months.