India's manufacturing sector grew at a slower pace in April on weak domestic orders, raising hopes for a rate cut by the RBI.
The contraction in factory growth rate, after a robust uptick in the previous month, also resulted in some job losses and companies adopted a cost-cautious approach to hiring. The headline HSBC India Purchasing Managers' Index (PMI), compiled by Markit, stood at 51.3 in April, down from 52.1 in March, pointing to a weaker improvement in operating conditions across various industries.
The PMI is a composite gauge designed to give a single figure snapshot of manufacturing business conditions. A measure above 50 indicates that the sector is expanding, while a figure below that level means contraction. The rate of growth in order flows moderated since March, amid softening domestic demand and competitive pres sures, the survey showed.
The headline index was recorded above the crucial 50.0 threshold for the 18th successive month.
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