Modi’s ‘Make In India’ Off To A Shaky Start In 2015

In a bad news for Prime Minister Narendra Modi’s ambitious ‘Make in India’ campaign, growth of manufacturing activities in India declined to a three-month low In January, according to HSBC purchasing managers' index (PMI). Notably, the rate of growth of the manufacturing sector in the country had stood at a two-year high in December last year.

PMI went down to 52.9 points in January as against 54.5 points in December. If the PMI is above 50 points, it indicates expansion, whereas if it is less than 50 points, it implies contraction in manufacturing activities.

Markit Economics, which compiles the PMI data, said, “Despite falling from December’s two-year-high level, the headline index remained consistent, with a solid improvement in business conditions in January.”

When compared with other emerging economies, the growth of India’s manufacturing sector was not too slow. For instance, manufacturing activities China saw contraction for second consecutive month. Its PMI in January was 49.7.

Pranjul Bhandari, HSBC’s chief India economist, said, “The manufacturing activity continued to signal improvement in January, though the rate of growth slipped to a three-month low. This could be partly attributed to consolidation after two months of impressive uptick.”
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