After tough times, future seems bright for India Inc! Manufacturing sector is considered as the backbone of the economic development of the country and its resurgence has been one of the industry’s bright spots in recent times.
Bringing an end to the prolonged slump in manufacturing activity, the manufacturing purchasing managers’ index (PMI), rose from 52.7 in December to 55.3 in January, the highest in nearly eight years. Further, at 54.5 in February, the headline seasonally adjusted IHS Markit India Manufacturing PMI held close to January’s 55.3. Manufacturing production increased at a similar pace to January, as firms reacted positively to new business gains and favourable market conditions. This signalled another robust improvement in operating conditions across the sector driven by sustained growth in factory orders, exports and output.
Indian power sector is undergoing a significant transformation thanks to sustained socio-economic growth that continues to drive electricity demand. Also, the government’s focus on attaining ‘Power for All’ has accelerated capacity addition in the country. However, electricity demand remained far below their usual levels for quite some time due to fall in industrial activity.
Of late, the electricity demand rose for the first time in six months! According to the data from the Central Electricity Authority (CEA), January demand for electricity rose to 105.29 billion units from 101.71 billion units a year earlier. This suggests a recovery in industrial production because the increase in demand was led by major industrialised states Maharashtra (8%), Andhra Pradesh (7.4%) and Karnataka (7.7%).
It is believed that the Indian power sector will continue to grow on the
back of government measures that will prop up investments and electricity demand.