Indian Economic indicators-Picture needing a closer look

As India moves into the new year, the report for the important economic indicators for January is said to be pretty dull. Many economists are looking forward to a pick up in economic activity the manufacturing and service sector is said to be posting low figures-suggesting that something urgent needs to be done to pick the economy back up.

Indian Services Sector and Manufacturing Sector

As hiring in many sectors is almost next to none, it is pretty evident as per India’s Purchasing Managers index which is said to have dropped from 59.2 in December to 57.9 in January. This because the service sector is one of the important pillars of our economic growth, will hurt the prospects of a strong turnaround for this year. However, the manufacturing sector is said to have done better considering the demand the Manufacturing PMI is said to be 58 from 56.4 recorded in December 2024.

The main issue in our economy is said to be the ‘sluggish demand’ from the domestic market. This is affecting most of the business houses in terms of falling sales of their services- which predominantly affected the service sector.

In the current scenario, the nation's outlook is more of a mixed bag. The service sector is said to be performing at its lowest levels, as seen in low hires and no new hiring for a significantly longer period. This, along with high-level competition for limited-quality jobs in the market, is said to be another factor hurting the sentiments of professionals looking for better pastures of work. There is a significant loss of growth in the current fiscal year, which is said to be at 6.4 percent, as per official estimates.

With the pressures of high inflation and falling Indian rupee against the US. It will be challenging for the economy to tread in the choppy waters. The hope of the new governor to start certain tweaks and rate cuts to ease the tightness in the economy and stimulate growth is the way forward. It's only a matter of time before some policy changes or tweaks could bring the economy back to normalcy. An approach of constant checks and balances taken by the RBI (central bank) along with a promising budget is presented- India stands to shine bright among the SE Asian economies.