Manufacturing PMI rises three month high in March 2023

India’s Manufacturing Purchasing Managers’ Index (PMI) has witnessed a jump from 55.3 in February to 56.4 in March 2023, highest in three months.

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India’s Manufacturing Purchasing Managers’ Index recorded strongest improvement in the last three months with a jump to 56.4 in March from 55.3 in February. The record surge is credited to faster expansions in new orders and output.

The latest data came on the heels of a 22% YoY jump in goods and services tax collections in March to ₹ 1.61 trillion, the second highest monthly mop-up ever from the indirect tax applied on a broad spectrum of transactions.

Pollyanna De Lima, economics associate director at S&P Global Market Intelligence stated, “Underlying demand for Indian goods remained strong in March, underscored by the quickest upturn in factory orders for three months. Hence, production continued to expand at a robust clip and firms stepped up their stock building efforts.

As of the PMI Index, a print above 50 means expansion whereas a score below 50 indicates contraction. The March PMI has depicted an improvement in overall operating conditions for the 21^st straight month.