India is likely to witness a recovery in its manufacturing production in the coming months, even though the country's industrial production contracted 2.3 per cent in March, DBS Bank has said.
"Purchasing managers' index (PMI) for April has risen above the 50 mark to 53.3 suggesting industrial output expanded in sequential terms in April. Therefore, we continue to expect a recovery in manufacturing production in the months ahead," DBS Bank said in a report.
PMI gives an indication of the country's manufacturing activity and its future outlook.
India's industrial production declined 2.3 per cent in March compared to a rise of 5.5 per cent in the same month in 2008, mainly on account of poor performance by the manufacturing sector.
"This outcome is actually not surprising and is in line with trends in the PMI survey. PMI readings have been below the neutral 50 mark in the first quarter. Importantly, the outlook for manufacturing growth in the coming quarters still is positive," the report said.
