What factors contributed to the decline in India's manufacturing activity in September
India's manufacturing activity reached a five-month low in September.
There are multiple factors that contributed to the decline in India's manufacturing activity in September. These include:
- COVID-19 Impact: India experienced a resurgence of COVID-19 cases in September, leading to localized lockdowns and disruptions in supply chains. This resulted in reduced production and factory closures.
- Weaker Demand: The pandemic has also led to a decrease in consumer demand, both domestically and globally. This reduced demand has resulted in a decline in new orders, leading to a slowdown in manufacturing activity.
- Skill Shortages: Many manufacturers faced challenges in sourcing skilled labor due to labor migration and restrictions on movement during the pandemic. This has affected production capacity and efficiency.
- Higher Input Costs: Rising costs of raw materials, such as steel and petroleum, have increased production costs for manufacturers. This has put pressure on their profitability and impacted overall manufacturing activity.
- Government Policies: Some sector-specific policies, such as changes in import duties or regulations, may have impacted manufacturing activity. Additionally, uncertainty surrounding trade policies and geopolitical tensions may have affected investor sentiment and manufacturing activity.
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