Factory activity rises to six-month high of 57.7 in January

Manufacturing PMI for January

India’s manufacturing showed signs of recovery in January, start the year on a good note after plunging to a 12-month low in the previous month, results of a private sector survey released on February 3 showed.

The HSBC India Manufacturing Purchasing Managers' Index rose to a six-month high of 57.7 in January from 56.4 in the previous month.

The data corresponds with better performance on the consumption front as well. GST collections rose to a nine-month high of Rs 1.92 lakh crore in January, the first double-digit growth in six months.

In Budget for the financial year 2025-26, presented on February 1, the government has tried to give growth a push with rationalisation of income-tax rates.

The economy is expected to grow faster this quarter after a disappointing first half when growth dipped to 6 percent compared with 8.2 percent in FY24.

Growth is estimated to settle lower at 6.4 percent in FY25. The Economic Survey, released on the eve of the Budget, pegged growth at 6.3-6.8 percent for the new fiscal, which begins April 1.

India needs to grow at 8 percent, along with other changes, to achieve the goal of becoming a developed economy by 2047, the survey said.