;
Home / Knowledge / News / Textiles / GST slows India's manufacturing growth in October
GST slows India's manufacturing growth in October
02
Nov '17
GST slows India
The rollout of goods and services tax (GST) has affected the Indian manufacturing sector badly, according to a report. The Nikkei India Manufacturing Purchasing Managers’ Index (PMI) reading stood at 50.3 in October, down from 51.2 in September. The reduction indicated a broad stagnation in the health of the manufacturing sector during October.

The PMI is based on monthly surveys of carefully selected companies representing major and developing economies worldwide. The Nikkei India Manufacturing PMI is the report based on data compiled from over 400 industrial companies.

"Growth in India’s manufacturing sector lost momentum in October. Output rose only fractionally and new orders stagnated over the month. In response to subdued demand conditions, both purchasing activity and pre-production inventories decreased," said the survey.

"India’s manufacturing companies struggled somewhat as the recent recovery enjoyed by the sector lost impetus in October. Disappointingly, manufacturing production rose at the weakest pace in the current sequence of growth. Inflows of new orders stagnated as the negative effects arising from the implementation of GST continued to dampen demand levels. Furthermore, overseas demand for Indian goods dipped to the greatest extent since September 2013," said Aashna Dodhia, economist at IHS Markit and author of the report.

On the price front, manufacturing companies continued to face higher input costs, which rose at the fastest pace since May. Firms raised their output charges to pass on higher cost burdens to clients. That said, their ability to fully pass on higher input costs was restricted due to competitive conditions. Reflecting subdued demand conditions, firms were discouraged from engaging in input buying. Purchasing activity fell for the first time in three months, albeit marginally. Meanwhile, pre-production stocks reduced in October.

“On the bright side, the labour market continued to improve, with manufacturers further increasing their staffing levels, and at a pace similar to September’s 59-month high. Business confidence eased to the weakest since February as some firms expressed concerns over negative GST effects. However, the manufacturers those were optimistic forecasted benefits of GST materialising over the next 12 months," said Dodhia. (RR)

Fibre2Fashion News Desk – India


Must ReadView All

Courtesy: Global Fashion Agenda

Apparel/Garments | On 23rd Jan 2019

Global Fashion Agenda releases CEO Agenda 2019

Highlighting the urgency of combating climate change, non-profit...

USTR aims for more balanced trade in US-EU trade talks

Textiles | On 23rd Jan 2019

USTR aims for more balanced trade in US-EU trade talks

In negotiations for a trade agreement with the European Union (EU),...

Courtesy: Ayotunde Oguntoyinbo/SMART

Textiles | On 23rd Jan 2019

EU lacks sufficiently stringent regulations: SMART

Despite the European Union (EU) having a wide range of...

Interviews View All

Divyesh Mashruwala, Akshar Industries

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Vasanth Kumar, Max Fashion India

Vasanth Kumar
Max Fashion India

‘Traditional high-street retailers are now willing to offer franchisees to ...

Top executives, Textile industry

Top executives
Textile industry

Defining MSMEs on the basis of turnover makes it simpler to do business

Milva Morani,

Milva Morani

Brighi Technologies began in 1970 with trading and repairing sewing...

Vikas Banduke,

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Tina Antoniades,

Tina Antoniades

India-headquartered Lulu & Sky is a rapidly escalating brand with the...

Isabel Herranz, European School of Business & innovation

Isabel Herranz
European School of Business & innovation

Cutting-edge ideas like the Internet of Things and artificial intelligence ...

Silke Brand-Kirsch, Schlegel und Partner

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Wolfgang Plasser, Lenzing AG

Wolfgang Plasser
Lenzing AG

The Lenzing Group is an international company headquartered in Austria...

Varsha Wadhwa, VW

Varsha Wadhwa
VW

Coming from a family that ran a business of jute and linen mills since...

Prathyusha Garimella, Prathyusha Garimella

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Sonam & Paras Modi, SVA

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


January 2019

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search