Indian manufacturing activity grows higher than expected in November

The new orders sub-index rose to 51.9 last month, its highest since April. In October it shrank to 48.9.

 

Such strong demand augurs well and will be welcome news for a government losing popularity ahead of an election next year because of slowing growth and stubbornly high inflation.

The survey pointed to some good news on inflation as well, bringing relief to the Reserve Bank of India (RBI), which hiked interest rates by 25 basis points at back-to-back meetings to curb rising prices, taking the policy repo rate to 7.75%

 

 .

Both input and output costs rose at a softer pace in November, the survey showed.

HSBC’s Eskesen said RBI would be getting closer to the end of its tightening cycle if the trend of easing inflation continues.

“Although it (RBI) may still need to notch rates up a bit further,” 

VIKASH CHANDRA MISHRA
PGDM 1ST YEAR
SOURCE: MINT