Pace of manufacturing sector picks up: Due to this, the PMI index reached 56.4 in March

Manufacturing activity in India picked up last month as new orders, and production increased, demand picked up and cost pressures eased. The S&P Global Purchasing Managers' Index rose to 56.4 in March, a 3-month high. In February it stood at 55.3.
This is the 21st consecutive increase in India's manufacturing PMI when the PMI has been above 50. A PMI above 50 means that there is growth in manufacturing activity and a reading below means that manufacturing activity is slowing down.
According to the survey, cost-related inflation declined to its second lowest level in two-and-a-half years in March due to easing pressure on supply chains and increased availability of raw materials. Due to the slight increase in business, the companies did not make new recruitments.
The Purchasing Managers' Index (PMI) is an indicator of the economic health of the manufacturing sector. Through this, the economic condition of a country is assessed. The PMI is based on a number of activities in the private sector, including the services sector. Almost all the countries included in this are compared with the same criteria.
The main purpose of the PMI is to provide corroborative information about the economy even before the official data, thereby giving accurate signals about the economy in advance. PMI is based on 5 main factors. These five key factors include new orders, inventory levels, production, supply deliveries and the employment environment.