PMI shows strong rise in business activity: Garg

The PMI data for November shows overall strong increase in business activity as well as demand and should augur well for economic growth in October-December quarter, economic affairs secretary Subhash Chandra Garg said on Wednesday.

The Nikkei India Composite PMI Output Index — that maps both the manufacturing and services sector — rose to 54.5 in November, pointing to the fastest expansion in private sector activity since October 2016, data released on Wednesday showed.

The Composite PMI Output Index in October was at 53.

“Fastest expansion in Composite PMI Output Index in November since October 2016. Rising to 54.5. PMI notes quickest pace of growth in exports in November in last four years. Overall strong increase in business activity and in demand. Should augur well for 3rd quarter GDP growth,” Garg tweeted.

India’s economic growth fell to 7.1 per cent in the second quarter (July-September) of the current fiscal, from 8.2 per cent in the April-June period. The growth was 7.7 per cent in the January-March period.

As per data released last month, India’s exports rose by 17.86 per cent to $26.98 billion in October. During the April-October period of the current fiscal, exports grew by 13.27 per cent to $191 billion.