News of a big 'relief' for Modi government on the economic front
Tuesday - February 4, 2020 11:27 am ,
Category : WTN SPECIAL
The effect of the economic slowdown decreasing gradually
After all, the PMI figures give a reason for the Modi government to smile on the economic front!
FEB 04 (WTN) - For the last 18 months, the global economic slowdown has affected the Indian economy for some reason or the other. The global economic slowdown has had its negative impact on almost every sector of the economy, from the auto sector to the textile sector. There have been many reasons responsible for the global economic slowdown, but the ongoing trade war between the US and China was a huge factor. As far as the Indian economy is concerned, for your information, let us know that the economic slowdown has affected the employment of many people along with the GDP of the country. That is, the essence is that the global economic slowdown has affected every sector of the Indian economy in some way.
But finally, there are few signs of getting rid of the economic slowdown. For your information, let us know that the production figures for the first month of the New Year are indicating that the economic slowdown that has dominated the country's economy is now ending. According to the information received from the media, due to the receipt of new orders, the manufacturing activity in India has increased in the month of January this year faster than the previous eight years. Let us know that the Nikkei Manufacturing Purchasing Managers (Nikkei PMI) index IHS market which was 52.7 in December has increased to 55.3 in the month of January. According to the data, this is the highest level since February 2012, while one year before this figure was 53.9 in January 2019.
For your information, let us know that the PMI (Purchasing Managers' Index) is an indicator to accurately describe the economic condition of the manufacturing sector. Through this index, the economic situation of a country is assessed. Apart from manufacturing, the PMI figures are also released for the service sector.
It was hoped that after the trade deal between the US and China, the impact of the economic slowdown would be less, and it happened. The data clearly shows that the demand in the market is increasing, and for this reason, the effect of the economic slowdown is gradually becoming work. It is obvious that if the manufacturing activities of the country have increased, it means that it is increasing production, and employment activities are also showing better than before. For information, let us know that this is the 30th consecutive month when the manufacturing PMI has been above 50 points. In fact, PMI above 50 points is an indication of expansion in economic activity, while the PMI below 50 points indicates a decrease in economic activity.
It is clear that the measures taken by the Modi government to tackle the economic slowdown are now visible on the surface. For your information, let us know that a few months ago the Modi government had cut corporate tax so that companies suffering from the economic slowdown could get relief and support. Apart from the reduction in corporate tax, the Modi government had taken several measures which increased demand, and increased demand as production increased. The PMI figures are clearly stating that the Indian economy is recovering due to the economic slowdown, and there is an improvement in the need of customers, due to which demand is increasing as production is increasing. Let us tell you that the rapid growth in manufacturing in getting new orders has not been seen in the last 5 years.
At the same time, for your information, let us know that it is clear from the PMI data that not only India but also other countries of the world; the effect of the economic slowdown is decreasing. In fact, the data for the month of January shows that the increased demand from foreign markets is a key role in the total sales of Indian companies. Not only this, the demand for foreign markets has increased at the fastest pace after November 2018. As you know, the economic slowdown also gave a big blow to the employment sector, but the month of January has also seen improvement in employment-related activities, which is the fastest in the last seven and a half years.
According to economic experts, the improvement in the PMI figures is a very good sign for the Indian economy. Naturally, the recovery in the economy would have provided relief to the Reserve Bank. In such a situation, it is now necessary to see what changes the Reserve Bank makes in its monetary policy by observing market movements. According to experts, in this era of being issued from the economic slowdown, the Reserve Bank can take such measures in which people have more money, and they can use the money in purchases so that the demand for manufacturing for companies will increase. After all, the PMI figures have given a reason to smile on the economic front for the Modi government. Now it has to be seen how much more this boom in the economy comes.
FEB 04 (WTN) - For the last 18 months, the global economic slowdown has affected the Indian economy for some reason or the other. The global economic slowdown has had its negative impact on almost every sector of the economy, from the auto sector to the textile sector. There have been many reasons responsible for the global economic slowdown, but the ongoing trade war between the US and China was a huge factor. As far as the Indian economy is concerned, for your information, let us know that the economic slowdown has affected the employment of many people along with the GDP of the country. That is, the essence is that the global economic slowdown has affected every sector of the Indian economy in some way.
But finally, there are few signs of getting rid of the economic slowdown. For your information, let us know that the production figures for the first month of the New Year are indicating that the economic slowdown that has dominated the country's economy is now ending. According to the information received from the media, due to the receipt of new orders, the manufacturing activity in India has increased in the month of January this year faster than the previous eight years. Let us know that the Nikkei Manufacturing Purchasing Managers (Nikkei PMI) index IHS market which was 52.7 in December has increased to 55.3 in the month of January. According to the data, this is the highest level since February 2012, while one year before this figure was 53.9 in January 2019.
For your information, let us know that the PMI (Purchasing Managers' Index) is an indicator to accurately describe the economic condition of the manufacturing sector. Through this index, the economic situation of a country is assessed. Apart from manufacturing, the PMI figures are also released for the service sector.
It was hoped that after the trade deal between the US and China, the impact of the economic slowdown would be less, and it happened. The data clearly shows that the demand in the market is increasing, and for this reason, the effect of the economic slowdown is gradually becoming work. It is obvious that if the manufacturing activities of the country have increased, it means that it is increasing production, and employment activities are also showing better than before. For information, let us know that this is the 30th consecutive month when the manufacturing PMI has been above 50 points. In fact, PMI above 50 points is an indication of expansion in economic activity, while the PMI below 50 points indicates a decrease in economic activity.
It is clear that the measures taken by the Modi government to tackle the economic slowdown are now visible on the surface. For your information, let us know that a few months ago the Modi government had cut corporate tax so that companies suffering from the economic slowdown could get relief and support. Apart from the reduction in corporate tax, the Modi government had taken several measures which increased demand, and increased demand as production increased. The PMI figures are clearly stating that the Indian economy is recovering due to the economic slowdown, and there is an improvement in the need of customers, due to which demand is increasing as production is increasing. Let us tell you that the rapid growth in manufacturing in getting new orders has not been seen in the last 5 years.
At the same time, for your information, let us know that it is clear from the PMI data that not only India but also other countries of the world; the effect of the economic slowdown is decreasing. In fact, the data for the month of January shows that the increased demand from foreign markets is a key role in the total sales of Indian companies. Not only this, the demand for foreign markets has increased at the fastest pace after November 2018. As you know, the economic slowdown also gave a big blow to the employment sector, but the month of January has also seen improvement in employment-related activities, which is the fastest in the last seven and a half years.
According to economic experts, the improvement in the PMI figures is a very good sign for the Indian economy. Naturally, the recovery in the economy would have provided relief to the Reserve Bank. In such a situation, it is now necessary to see what changes the Reserve Bank makes in its monetary policy by observing market movements. According to experts, in this era of being issued from the economic slowdown, the Reserve Bank can take such measures in which people have more money, and they can use the money in purchases so that the demand for manufacturing for companies will increase. After all, the PMI figures have given a reason to smile on the economic front for the Modi government. Now it has to be seen how much more this boom in the economy comes.
