The year 2022 ended positively for Indian manufacturers as their business conditions in December improved to the highest in over two years.
S&P Global Purchasing Manager's Index data released on Monday showed India's manufacturing index at 57.8 in December, up from 55.7 in November, pointing to a robust improvement in the health of the manufacturing sector and the best seen since October 2020.
"Demand resilience boosted sales growth in December, with the rate of increase picking up to the quickest since February 2021. In some instances, panellists indicated that advertising, product diversification and favourable economic conditions supported sales," S&P Global PMI said in a statement.
It added international demand for Indian goods also improved but was lower as compared with November.
"Following a promising start to 2022, the Indian manufacturing industry maintained a strong performance as time progressed, wrapping the year with the best expansion in production seen since November 2021," said Pollyanna De Lima, Economics Associate Director at S&P Global Market Intelligence.
"Demand strength took centre stage among the reasons provided by firms for improvements in many measures. Additional materials were purchased and extra workers hired as companies sought to supplement production and maintain healthy levels of inventories. Input stocks rose at a near-record pace."
Less challenging supply-chain conditions also supported the growth.
"While some may question the resilience of the Indian manufacturing industry in 2023 amid a deteriorating outlook for the global economy, manufacturers were strongly confident in their ability to lift production from present levels," Pollyanna De Lima added.
( With inputs from ANI )
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