NEW DELHI, March 5 -- Business activity in India's manufacturing sector fell marginally in February. The purchasing managers' index (PMI) for the sector declined from 57.7 in January to 57.5 in February, showed IHS Markit data. A figure above 50 shows expansion, and below the threshold indicates contraction. Still, the headline figure was above the long-run average of 53.6.
Darren Aw, Asia economist at Capital Economics Ltd, said the fall in India's manufacturing PMI is much lower than the contraction elsewhere in Asia. According to Aw, the breakdown of components suggests that domestic demand is continuing its recovery, but exports lag.
Thanks to the loose monetary policy and continued government support, economists are hopeful that the ...