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India's PMI rises in June, with steel and services sectors driving economic growth: SBI

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Business 10 Jul 2024 03:06 PM IST ANI
The manufacturing Purchasing Managers' Index (PMI) rose in June 2024, fueled by strong demand and the strongest employment activity in 19 years, according to an SBI report. Concurrently, the 8 Core Industries Index climbed by 6.5% year on year in the first two months of FY25, boosted mostly by increasing activity in critical sectors such as coal, natural gas, and power.
 
Steel demand continued to rise, with double-digit growth year on year, aided by strong demand from sectors such as real estate, which experienced a large increase, with home development in key cities reaching an 11-year high in the first half of 2024. This spike in domestic demand has boosted steel production and contributed to overall industrial expansion.
 
On the other hand, auto sales faced challenges, slowing down due to adverse weather conditions and base effects despite attractive discounts offered by Original Equipment Manufacturers (OEMs). The Federation of Automobile Dealers Associations (FADA) has advised OEMs to adopt prudent inventory management practices to address rising stock levels.
 
Power consumption surged 9% year-on-year in June 2024, reaching 152.4 billion units (BU), driven by prolonged heat waves and increased industrial activity. Peak demand soared to 245.4 gigawatts (GW), indicating heightened cooling appliance usage during peak hours.
 
The symbiotic relationship between the manufacturing and services sectors is poised to further strengthen India's economic resilience and growth trajectory in the coming months, bolstered by strategic sectoral alignments and robust domestic demand dynamics. India's economic landscape in early FY25 is marked by robust collaboration between the manufacturing and services sectors, as indicated by strong industry performance indicators across various fronts.