India continues its strong manufacturing growth. The Purchasing Managers Index (PMI) and Industrial Production Index both maintain their upward climb. All types of vehicle sales are growing by impressive numbers. To remedy the supply chain issues from East Asia, an investment of $3 billion will create India’s first electronic display plant. For more industry intel and other tidbits, read on.
India’s manufacturing PMI for July stood at 56.4, up from 53.9 in June. Both output and new orders grew for the 12th straight month. Once reported, the second quarter’s economic growth is anticipated to be around 14%-15%.
The industrial production index grew 19.6% YOY in the month of May from 6.7% in April. It was the strongest growth in industrial activity since May 2021.
According to the Federation of Automobile Dealers Association (FADA), total automotive retail sales in June (1,550,855) grew by 27.16% on a YOY basis. With improvement in the chip supply, passenger vehicle sales (260,683) grew around 40% on a YOY basis. The second quarter’s passenger vehicle sales of 910,431 was up by 49% YOY. Commercial vehicle sales (67,696) grew by 89% on a YOY basis. Two-wheeler sales (1,119,096) grew by 20% on a YOY basis. Car exports for the second quarter grew by 26% YOY.
India’s manufacturing exports are growing at a CAGR of 15% and are likely to touch $1 trillion by 2028 from an estimated $418 billion in 2022. According to a recent report released by Bain and Company, the projected growth is due to expansion in production capacity, government policy support, heightened M&A activity, and investments as well as strong fundamentals in the manufacturing sector that exist despite possible recessionary and inflationary pressures.
Recently announced project and investment news:
Adani group is planning to invest around $70 billion in green energy transition and infrastructure projects.
Vedanta and Foxconn have signed an MOU to form a 60:40 joint venture company in India. The group is planning to invest around $15 billion over a five to 10 year period to build displays and semiconductor chips in India.
As demand for tractors has jumped over 44% YOY in the first two months of the current fiscal year, Mahindra tractors is planning to set up a new plant in Mohali, near Chandigarh.
Rajesh Exports will invest over $3 billion in Telangana to set up the country’s first electronic display plant.
Hyderabad-based GODI India is planning to invest $3 billion over five years to set up multiple Giga factories to produce lithium-ion batteries to meet EV demand as well as serve stationary energy storage segments.
Pratt & Whitney is setting up a new engineering center in Bengaluru which will focus on providing contract engineering services.
Hindustan Aeronautics Limited (HAL) and Safran formed a new JV to develop helicopter engines.
Tata Power is planning to invest $10 billion over the next five years in renewable energy.
Exide Industries is setting up a multi-GW li-ion battery manufacturing facility in Bengaluru.
