The Impact of COVID-19 on Indiaâs Manufacturing Sector
A year ago, it seemed certain that the shifting global dynamics due to COVID had the potential to pave India s way into the manufacturing sector. Come 2021, manufacturing in India has come to a near standstill.
As per a government report, the Indian automotive industry suffered Rs 2,300 crore loss per day and an estimated job loss in the sector was about 3.45 lakh, as a direct result of the pandemic. Credit: Reuters
Government10/May/2021
Last year, the swift spread of the coronavirus pandemic came as a heavy blow to the world economy. As the worldâs largest manufacturer became the epicentre for the worst pandemic in modern times, stock markets panicked and supply chains from China were severed. With countries announcing the need to disengage the dependency on tightly integrated supply chains from China, the age of Indian manufacturing was heralded. It was believed that the US-China trade war would lead to added wind
“Business sentiment remained weak and is going to fall further in the first quarter of FY22. The six major cities of New Delhi, Mumbai, Pune, Bengaluru, Chennai and Kolkata are very badly affected,” said Bornali Bhandari, a senior fellow at the National Council of Applied Economic Research.
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A slight drop in Covid cases for two straight days is a positive sign for Dalal Street, but persistent selloff by FIIs isn’t. After a smart recovery on Monday, domestic stocks may see a muted start to Tuesday’s trade, much in line with their Asian peers. Technical charts, however, are signalling gains ahead.
Here s breaking down the pre-market actions:
STATE OF THE MARKETS
Nifty futures on the Singapore Exchange traded 12 points, or 0.08 per cent, lower at 14,670.50 in signs that Dalal Street was headed for a flat start on Tuesday.
Tech View: Nifty likely to see recovery
NEW DELHI: Activity in the country’s manufacturing sector held steady in April against the backdrop of a raging pandemic but factory orders and production rose at their slowest rates in eight months, survey showed on Monday.
The IHS Markit India Manufacturing Purchasing Managers’ Index (PMI) was at 55.5 in April, largely unchanged from March’s reading of 55.4 and indicating a solid improvement in the health of the sector. Consumer goods was the strongest-performing category, followed by capital goods and then intermediate goods. The 50-point mark separates expansion from contraction. The survey is compiled from responses to questionnaires sent to purchasing managers in a panel of around 400 manufacturers and is considered as a key data by policy makers.
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