Where India stands among Asian economies in manufacturing growth
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Chart 1 shows that India stands in the middle of the Asian pack in the manufacturing Purchasing Managers’ Index (PMI) league tables for May. Note that China’s reading is below 50, which means the manufacturing sector has contracted from the previous month. Several other Asian economies also show a contraction in manufacturing.
Chart 2 shows that the Nikkei India Manufacturing PMI is at a three-month low and so is the New Orders Index. That suggests a recovery from the demonetization-induced slump in manufacturing is taking time and is unlikely to be V-shaped.