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Delhi Delhi: According to the industry survey report released by S&P Global on Monday, India’s manufacturing activities remained sluggish for the second consecutive month in April. The report said that the main reasons for this were the decline in global demand and increase in input costs due to the ongoing conflict in West Asia.

However, a slight improvement has been recorded in the Purchasing Managers’ Index (PMI). Manufacturing PMI increased to 54.7 in April, which was 53.9 in March. The level in March was the lowest in the last four years. Despite this, April’s performance is believed to be the second weakest since 2022, indicating that the sector is still under pressure.

According to the report, two key components of the PMI—new orders and output—also underperformed. The second worst level has been recorded in both of these within three and a half years. This indicates that the industry is facing challenges both at the demand and production levels.

S&P Global’s report also clarifies that a PMI reading above 50.0 indicates expansion in any sector, while a reading below 50.0 indicates contraction. The April figure of 54.7 shows that growth in the manufacturing sector continues, but its pace has slowed down.

According to experts, global geopolitical tensions, especially the ongoing conflict in West Asia, have impacted the supply chain and international demand. Along with this, the increase in raw material and input costs has also increased the production costs of companies, putting pressure on profits.

Economists believe that even though the PMI remains above 50, its declining pace indicates that the manufacturing sector needs to remain cautious in the coming months. Especially when there remains uncertainty in global demand.

Domestically, industries are hopeful that stable economic policies and improvement in domestic demand may improve the situation in the times to come. However, export-oriented sectors may continue to be impacted by global conditions.

Overall, the S&P Global report indicates that India’s manufacturing sector is still in an expansion mode, but the pace has weakened and global challenges are impacting its growth.