Reduction in tax

By admin November 30, 2009 9:10 am IST

The Indian manufacturing industry passed through a lean phase in the past few months as recessionary pressures made investors hesitant to invest funds and compelled customers to put their purchases on hold, which resulted in low industrial output. A reduction in tax worth Rs 40,000 crore has played a pivotal role in reviving the economy. The growth in industrial output will encourage the government to introduce more such stimulus packages.
The activities in the Indian manufacturing industry are surging at a phenomenal rate. During September 2009, the industry managed to recover from its 5-month dip in August on the back of high domestic demand and robust factory orders.

According to a survey conducted on 500 companies it was observed that the HSBC Market Purchasing Managers’ Index (PMI) surged from 53.2 in August to 55 in September this year. According to experts, the index has risen above 50. The rise in the index reflects that the Indian manufacturing industry is unlikely to witness a decline for the next 6 months. Previously, it was observed that the industry experienced a decline from March 2008 till the next 5 consecutive months. The industry experienced a drop of 44.4 in December 2008.
“Most manufacturers are overwhelmed by PMI as it has not only picked up pace but has also managed to recover from its previous losses. Therefore, manufacturers have been boosted by the rise in the index rate and they are aiming to maintain their position in the global market,” says J. Das, Managing Director, GN Tools Pvt. Ltd, a small-size tool manufacturing company in Haryana.