There is lots of good news to report from India, not the least of which are the economic stats. The manufacturing PMI remains healthy at 52.3, and the GDP is still projected to grow by 9% in 2021. In a recent C&W report, India ranked No. 2 in the world for preferred manufacturing destinations. The Tata-Airbus JV will be building 56 transport aircraft for the Indian air force, and Mahindra Aerostructures has secured a chunk of Boeing’s 737 components and subassemblies. ArcelorMittal plans $13 billion (yikes!) worth of investments in steel and renewable energy. For more industry intel and other tidbits, read on.
2nd quarter GDP grew 20.1% YOY with manufacturing expanding 50%. Overall, annual GDP for 2021 is projected to grow over 9%.
The manufacturing PMI was a healthy 52.3 in August. The services PMI also rebounded strongly to 56.7 from 45.4 in July. The unemployment rate fell to a four-month low of 6.95% in July.
The Tata Advanced Systems-Airbus joint venture secured a contract to supply 56 C-295 aircraft to the Indian air force. The first 16 aircraft will be delivered in “fly-away” condition from Spain, and the remaining 40 will be manufactured in India at the Tata facility. This deal is the first “Make in India” aerospace program in the private sector that will utilize the complete industrial ecosystem from manufacturing, assembling, testing, and qualifying, to delivering and maintaining the life cycle of the aircraft.
The weekly Nomura India Business Resumption Index (NIBR) has remained above 100 for the past month, indicating a continued steady recovery, and is even a bit higher that pre-pandemic levels. Additionally, beyond the strong 2021 projections, their market research group predicts 9% GDP growth in 2022.
Cushman & Wakefield released their manufacturing risk index report for 2021. India climbed to 2nd position after China in the global ranking of preferred manufacturing destinations. These rankings are broadly based on general business conditions, risks, and costs.
The latest UK Department of International Trade Global Outlook report predicts that by 2030, India will be the world’s 4th largest importer. It is presently the 8th largest. It further predicts that by 2050, it will rank No. 3 behind only China and the United States.
Total passenger vehicle sales dropped by 12% from July to August because of low inventory from supply chain constraints and the microchip shortage.
Mahindra Aerostructures secured a contract to manufacture inlet outer barrel components and subassemblies for Boeing 737 aircraft. They will produce the parts at their state-of-the-art automated facility in Narsapura.
Lohia Machinery Ltd., known as LML, confirmed that they will invest $150 million to enter the two-wheeled e-scooter market. The scooters will be equipped with cutting-edge technology and will target the upper-middle and urban segments of society. Site selection for the factory is ongoing.
The Tata Group is entering into semiconductor manufacturing as part of their plan to ramp up their presence in the electronics space.
MG Motor India will invest $325 million to increase capacity at their Halol plant, which presently can produce 80,000 units per year.
ArcelorMittal will invest about $13 billion to increase capacity at their Gujarat-based steel plant and to develop renewable energy assets in India.
Kia Motors is planning to ramp up their production capacity in India by 40%.