India PMI rises sharply in June as steel, services sectors drive growth

At the same time, the eight-industry index rose 6.5 percent year-on-year in the first two months of fiscal 2025, largely due to increased activity in key sectors such as coal mining, natural gas and electricity.

However, segments like fertilisers and cement saw a decline in production due to base effects.

Steel demand continued to grow, posting double-digit year-on-year growth, supported by strong demand from sectors such as real estate, which saw significant growth, with home starts in major cities reaching an 11-year high in the first half of calendar year 2024.

This increase in domestic demand bolstered steel production and contributed to overall industrial expansion.

On the other hand, car sales faced headwinds, falling due to unfavourable weather conditions and base effects despite attractive discounts offered by original equipment manufacturers (OEMs).

The Federation of Automobile Dealers Associations (FADA) has recommended that OEMs adopt prudent inventory management practices to address rising inventory levels.

In the services sector, activity continued to set new records, underlining India’s global leadership in digital payments. Services sales, particularly in international markets, posted solid growth, supported by strong domestic demand and low inflationary pressures.

Annual growth in sales of IT and non-IT services at private non-financial companies outpaced that of manufacturers, reaching 5.5% and 7.9% year-on-year in fiscal 2024, respectively.

Electricity consumption rose 9 percent year-on-year in June 2024 to 152.4 billion units (BU), driven by prolonged heatwaves and increased industrial activity.

Peak demand increased to 245.4 gigawatts (GW), indicating increased use of cooling equipment during peak hours.

The value of transactions through Unified Payments Interface (UPI) continued to hover around Rs 20 trillion in June 2024, underlining India’s robust digital payments ecosystem and its growing adoption across sectors.

The symbiotic relationship between manufacturing and services sectors is set to further strengthen India’s economic resilience and growth path in the coming months, supported by strategic sectoral linkages and solid domestic demand dynamics.

The Indian economy at the start of fiscal 2025 is marked by solid collaboration between manufacturing and services sectors, as evidenced by strong industrial performance indicators across fronts. (ANI)

This report is generated automatically by ANI news service. ThePrint is not responsible for its content.