India’s Economy Shows Strong Growth in July 2024 Despite Global Challenges
In July 2024, India’s composite Purchasing Managers’ Index (PMI) stood at 60.7, reflecting strong economic activity, although slightly lower than June’s 60.9. The Services PMI was 60.3, maintaining its position above 60 for seven consecutive months due to strong demand, technology investments, and new business gains.
The Manufacturing PMI was 58.1, indicating robust growth driven by high demand and increased international sales. Producers responded by adding stocks and raising selling prices to maintain margins despite rising input costs. The sector also saw strong job creation, although at a slightly slower pace than in June 2024.
Globally, the manufacturing outlook is less optimistic. The G-20 Manufacturing PMI fell below 50 for the fourth month, indicating contraction. The JPMorgan Global Manufacturing PMI slowed due to weaker growth in the US and China, ongoing downturns in the eurozone, and Japan’s contraction. Key issues included declining new orders and supply-chain disruptions.
Despite global challenges, India’s manufacturing sector showed the fastest growth among surveyed nations. Favorable economic conditions and strong domestic demand are expected to support continued growth. However, rising inflation and global tensions, particularly in the Middle East, pose potential challenges.
Overall, India’s economy is anticipated to grow, bolstered by improved weather conditions and increased government spending following recent elections.
Doubts Revealed
Purchasing Managers’ Index (PMI) -: PMI is a number that shows how well businesses are doing. If it’s above 50, it means businesses are growing. If it’s below 50, it means they are shrinking.
Services PMI -: This is a part of PMI that looks at how well service businesses, like banks and hotels, are doing. If it’s above 50, these businesses are growing.
Manufacturing PMI -: This part of PMI checks how well factories and manufacturing businesses are doing. A number above 50 means they are growing.
G-20 -: G-20 is a group of 20 important countries that work together on big world issues like the economy. India is part of this group.
Global contraction -: This means that the economies of many countries are getting smaller or not growing as fast.
Government spending -: This is when the government uses money to build things like roads, schools, and hospitals to help the country grow.
Inflation -: Inflation is when prices of things like food and clothes go up, so you need more money to buy the same things.
