The economic growth – which hit a five-year low of 5.8 per cent in the March quarter – is showing signs of a rebound, finance secretary Subhash Chandra Garg said on Monday.
In a tweet, Garg said, “Turn around in demand and financing conditions beginning very well. PMI manufacturing is at 52.7. Crude is moving towards 60 dollars. Govt bond yield has gone below 7%. Spread for NBFCs/HFCs over Govt bond is narrowing. Rupee is firmly below 70. Sure signs of coming high growth.”
The Nikkei India Manufacturing Purchasing Managers’ Index improved to 52.7 in May from 51.8 in April. The improvement was led by a good performance of consumer goods segment, with rates of expansion in output, total sales, new export orders and employment surpassing those seen in the intermediate as well as capital goods categories.
Last week’s GDP data showed, with a fourth straight quarter of slowdown, India lost the fastest-growing large economy status in Q4FY19, trailing China’s growth (6.4 per cent) for the first time in nearly two years. —FE