India's drive to build a stronger domestic defence manufacturing ecosystem has received a fresh boost through a new international technology partnership focused on advanced ammunition production.The development comes as the government continues to encourage greater localisation of defence manufacturing under the Atmanirbhar Bharat and Make in India initiatives. With global supply chains becoming increasingly complex, access to advanced manufacturing technologies has become a key part of strengthening long-term defence preparedness.&nbsp;

Sahil Luthra, Founder and Managing Director, Vijayan Trishul Defence Solutions (VTDS).

Landmark technology transfer agreement&nbsp;The latest move involves a strategic technology transfer agreement between Vijayan Trishul Defence Solutions (VTDS), an Indian defence company licensed by the Ministry of Home Affairs to manufacture and proof-test small arms and ammunition, and DEUS Automation a.s., a sister company of the Czech Republic's STV Group.Founded by Mr. Sahil Luthra, Founder and Managing Director, and Ms. Prikansha Luthra, Co-Founder and Director, VTDS has been working to strengthen indigenous capabilities in the small arms and ammunition sector. Representing DEUS Automation a.s. in the partnership are Mr. Alex Černý, Chief Executive Officer and Member of the Board, and Mr. Ondřej Černý, Manager of Sales, Projects &amp; Purchase.Under the agreement, DEUS Automation will provide advanced manufacturing technology for the production of small-calibre ammunition in India. The collaboration is expected to help establish production capabilities based on international quality standards, precision engineering and modern manufacturing systems.The companies described the partnership as one of the first significant technology transfer collaborations between India and the Czech Republic in the small-calibre ammunition sector.<h2>Why the partnership matters</h2>Technology transfer has become a central pillar of India's efforts to reduce dependence on imported defence equipment and manufacturing know-how. Rather than simply importing finished products, such agreements enable domestic companies to build production capabilities using globally proven technologies.Industry experts believe collaborations of this nature can improve manufacturing quality, strengthen supply chains and accelerate the development of indigenous defence production. They can also create opportunities for future innovation and help Indian manufacturers compete in international markets.The agreement also reflects growing defence cooperation between India and the Czech Republic, with both countries exploring deeper industrial partnerships in advanced manufacturing and defence technologies.&nbsp;<h2>Focus on long-term manufacturing</h2>According to the companies, the collaboration extends beyond technology transfer and aims to create a long-term framework for industrial cooperation, innovation and knowledge exchange.VTDS said the partnership aligns with its strategy of combining international technological expertise with domestic manufacturing capabilities. Representatives of DEUS Automation said the agreement reflects a shared vision of supporting India's expanding defence manufacturing ambitions through proven production technologies.As India continues to strengthen its domestic defence industrial base, technology-led partnerships are expected to play an increasingly important role in expanding manufacturing capabilities, improving production standards and supporting the country's long-term self-reliance goals.&nbsp;

A fresh push to strengthen domestic defence manufacturing could reshape how advanced ammunition is produced in the country. The move highlights the growing importance of technology, innovation and long-term industrial capability in supporting self-reliance and future defence preparedness.

India's drive to build a stronger domestic defence manufacturing ecosystem has received a fresh boost through a new international technology partnership focused on advanced ammunition production. The development comes as the government continues to encourage greater localisation of defence manufacturing under the Atmanirbhar Bharat and Make in India initiatives. With global supply chains becoming increasingly complex, access to advanced manufacturing technologies has become a key part of strengthening long-term defence preparedness.

A fresh push to strengthen domestic defence manufacturing could reshape how advanced ammunition is produced in the country. The development highlights the growing importance of technology, innovation and long-term industrial capability in supporting self-reliance and future defence readiness.

Technology transfer deal boosts India's defence manufacturing ambitions

For decades, China was the world’s most dominant factory hub, offering scale, low cost, and strong logistics in the global manufacturing market. However, in recent years, several disruptions have brought a significant change in the supply chains across the world. The recent US-China trade tensions, COVID-19 pandemic, and geopolitical uncertainty have exposed the extent of dependence on one country. Now, companies are rethinking and expanding their production across different nations, adopting a de-risking strategy.<h2>China+1 shift and India’s opening</h2>Businesses are now transitioning to “China+1”, a strategy where firms keep a base in China but also extend to alternative locations. As global companies seek alternatives, India has emerged as a key player with its large market, young workforce, and policy support.In recent years, India has become the second-largest producer of mobile phones in the world, with Apple, Samsung, and other firms opening production plants in the country. India’s electronic exports have also significantly grown.There is also another quieter shift happening through Global Capability Centres (GCCs). These are offices where global companies do higher-value work like design, engineering, finance, and research. It shows that India is not just assembling products anymore—it is slowly moving into more advanced parts of the global production chain.Exports are also becoming more spread out across countries, which reduces dependence on just a few markets.<h2>Policy push is supporting the shift</h2>The government has been trying to support this transition through schemes like the PLI scheme, PM Gati Shakti, and the National Logistics Policy. The aim is simple – make it easier to move goods, reduce costs, and attract long-term investment. While these reforms may not show results right away, India’s manufacturing environment is gradually gaining momentum.<h2>Still a long road ahead</h2>Even with all this progress, India still has clear challenges. Moving goods is still expensive compared to many competing countries. And India is not yet deeply connected to Global Value Chains (GVCs), which means a lot of work still happens at the assembly stage rather than higher-value production.Skills are another gap. Modern manufacturing needs trained workers, engineers, and technicians, and India still needs to scale this up. At the same time, countries like Vietnam, Mexico, and Indonesia are moving quickly and already have strong export networks.<h2>A long-term opportunity</h2>The global supply chain shift gives India a real chance, but it will take time. Investment is increasing, and exports are growing, but building a strong manufacturing base is not just about factories.If India can improve infrastructure, build stronger skills, and move deeper into global value chains, it can become much more than just a “China+1” option. It can become a key part of how the world makes and moves goods in the future.

Global supply chains are shifting from China due to trade tensions and disruptions, with India emerging via China+1 strategy, rising manufacturing, GCC growth, but infrastructure and skills remain challenges.

For decades, China was the world’s most dominant factory hub, offering scale, low cost, and strong logistics in the global manufacturing market. However, in recent years, several disruptions have brought a significant change in the supply chains across the world. The recent US-China trade tensions, COVID-19 pandemic, and geopolitical uncertainty have exposed the extent of dependence on one country. Now, companies are rethinking and expanding their production across different nations, adopting a de-risking strategy. China+1 shift and India’s opening Businesses are now transitioning to “China+1”, a strategy where firms keep a base in China but also extend to alternative locations. As global companies seek alternatives, India has emerged as a key player with its large market, young workforce, and policy support. In recent years, India has become the second-largest producer of mobile phones in the world, with Apple, Samsung, and other firms opening production plants in the country. India’s electronic exports have also significantly grown. There is also another quieter shift happening through Global Capability Centres (GCCs). These are offices where global companies do higher-value work like design, engineering, finance, and research. It shows that India is not just assembling products anymore—it is slowly moving into more advanced parts of the global production chain. Exports are also becoming more spread out across countries, which reduces dependence on just a few markets. Policy push is supporting the shift The government has been trying to support this transition through schemes like the PLI scheme, PM Gati Shakti, and the National Logistics Policy. The aim is simple – make it easier to move goods, reduce costs, and attract long-term investment. While these reforms may not show results right away, India’s manufacturing environment is gradually gaining momentum. Still a long road ahead Even with all this progress, India still has clear challenges. Moving goods is still expensive compared to many competing countries. And India is not yet deeply connected to Global Value Chains (GVCs), which means a lot of work still happens at the assembly stage rather than higher-value production. Skills are another gap. Modern manufacturing needs trained workers, engineers, and technicians, and India still needs to scale this up. At the same time, countries like Vietnam, Mexico, and Indonesia are moving quickly and already have strong export networks. A long-term opportunity The global supply chain shift gives India a real chance, but it will take time. Investment is increasing, and exports are growing, but building a strong manufacturing base is not just about factories. If India can improve infrastructure, build stronger skills, and move deeper into global value chains, it can become much more than just a “China+1” option. It can become a key part of how the world makes and moves goods in the future.

Global supply chains are shifting from China due to trade tensions and disruptions, with India emerging via China+1 strategy, rising manufacturing, GCC growth, but infrastructure and skills remain challenges.

As global supply chains shift, can India become the next manufacturing hub?

India’s manufacturing sector posted its strongest performance in over a year in June, as output, new orders, and employment surged amid rising global demand and easing cost pressures. The HSBC India Manufacturing Purchasing Managers’ Index (PMI), compiled by S&amp;P Global, climbed to 58.4 in June from 57.6 in May, the highest level in 14 months and well above the long-run average of 54.1. A reading above 50 indicates expansion, and the June print reflects a substantial improvement in the sector’s health. This comes at the end of the first fiscal quarter, which has seen consistent gains in production and sales, despite global geopolitical tensions and trade uncertainties.<h2>Export orders surge, led by demand from US</h2>A key driver of the June surge was a sharp acceleration in international demand. New export orders grew at the third-fastest pace since the survey began in 2005, with Indian manufacturers citing stronger demand from across regions, particularly the United States. The increase in global interest helped offset slowdowns in the consumer and capital goods segments, even as intermediate goods producers led the expansion.Domestic new orders also picked up, supported by robust marketing efforts. The combined demand drove production volumes to their highest pace since April 2024. “To keep up with strong demand — particularly from international markets — Indian manufacturing firms had to tap deeper into their inventories, causing the stock of finished goods to continue shrinking,” said Pranjul Bhandari, Chief India Economist at HSBC.<h2>Record hiring and easing input costs boost sentiment</h2>The rise in demand also triggered the fastest pace of hiring in the survey’s history, with most firms reporting short-term recruitment to manage increasing workloads. Backlogs of work, which had stagnated in May, increased again in June.Cost pressures continued to ease, even as prices for key inputs like iron and steel remained elevated. Input inflation dropped to a four-month low and was negligible relative to historical averages. Despite this, output prices rose markedly as manufacturers passed on higher freight, labour, and material costs to clients, supported by strong demand.Inventory patterns reflected the shifting demand landscape. While purchases of raw materials rose at the fastest pace in 14 months, finished goods stocks declined significantly, with firms drawing down existing inventory to fulfil orders. Supply chains also showed improvement, with delivery times shortening at the quickest rate in five months.Looking ahead, the manufacturing sector’s outlook remains broadly positive. However, manufacturers remain cautious about inflationary pressures, increasing competition, and changing consumer preferences.The PMI data complements India’s broader economic picture. The country’s GDP grew 6.5 per cent in FY25, supported by a strong 7.4 per cent expansion in the March quarter. Manufacturing output grew 4.5 per cent for the year, indicating that the sector continues to play a key role in India’s post-pandemic economic recovery.

The HSBC India Manufacturing PMI, compiled by S&P Global, climbed to 58.4 in June from 57.6 in May, the highest level in 14 months and well above the long-run average of 54.1.

India’s manufacturing sector posted its strongest performance in over a year in June, as output, new orders, and employment surged amid rising global demand and easing cost pressures. The HSBC India Manufacturing Purchasing Managers’ Index (PMI), compiled by S&P Global, climbed to 58.4 in June from 57.6 in May, the highest level in 14 months and well above the long-run average of 54.1. A reading above 50 indicates expansion, and the June print reflects a substantial improvement in the sector’s health. This comes at the end of the first fiscal quarter, which has seen consistent gains in production and sales, despite global geopolitical tensions and trade uncertainties. Export orders surge, led by demand from US A key driver of the June surge was a sharp acceleration in international demand. New export orders grew at the third-fastest pace since the survey began in 2005, with Indian manufacturers citing stronger demand from across regions, particularly the United States. The increase in global interest helped offset slowdowns in the consumer and capital goods segments, even as intermediate goods producers led the expansion. Domestic new orders also picked up, supported by robust marketing efforts. The combined demand drove production volumes to their highest pace since April 2024. “To keep up with strong demand — particularly from international markets — Indian manufacturing firms had to tap deeper into their inventories, causing the stock of finished goods to continue shrinking,” said Pranjul Bhandari, Chief India Economist at HSBC. Record hiring and easing input costs boost sentiment The rise in demand also triggered the fastest pace of hiring in the survey’s history, with most firms reporting short-term recruitment to manage increasing workloads. Backlogs of work, which had stagnated in May, increased again in June. Cost pressures continued to ease, even as prices for key inputs like iron and steel remained elevated. Input inflation dropped to a four-month low and was negligible relative to historical averages. Despite this, output prices rose markedly as manufacturers passed on higher freight, labour, and material costs to clients, supported by strong demand. Inventory patterns reflected the shifting demand landscape. While purchases of raw materials rose at the fastest pace in 14 months, finished goods stocks declined significantly, with firms drawing down existing inventory to fulfil orders. Supply chains also showed improvement, with delivery times shortening at the quickest rate in five months. Looking ahead, the manufacturing sector’s outlook remains broadly positive. However, manufacturers remain cautious about inflationary pressures, increasing competition, and changing consumer preferences. The PMI data complements India’s broader economic picture. The country’s GDP grew 6.5 per cent in FY25, supported by a strong 7.4 per cent expansion in the March quarter. Manufacturing output grew 4.5 per cent for the year, indicating that the sector continues to play a key role in India’s post-pandemic economic recovery.

The HSBC India Manufacturing PMI, compiled by S&amp;P Global, climbed to 58.4 in June from 57.6 in May, the highest level in 14 months and well above the long-run average of 54.1.

India’s manufacturing PMI hits 14-month high on surge in orders, hiring

India's economic growth continues to expand despite a global slowdown. The HSBC's flash India Composite Purchasing Managers' Index (PMI) rose to 60.9 in June from last month's 60.5. This marks a faster expansion owing to growth in manufacturing and services sectors.

But what's more exciting is the pace of job creation. The survey showed that the job creation was at its strongest in over 18 years. This comes as a welcome boost for the newly elected government. When the country is growing by over 8 per cent, it's critical to ensure a robust inflow of jobs in the market. Despite the optimistic numbers, ensuring that jobs continue to grow is paramount.

India's export orders also registered substantial gains, marking the 22nd consecutive month of growth in June. The pace, however, slightly eased after record growth last month.

Coming to India's price pressures, price increases eased since May, pointing out an improving retail inflation outlook. Service input costs also eased to a 4-month low.

Although business confidence has weakened in the short term, the outlook for the year remains positive. Companies expect gains based on recent proposals, efficiency boosts, &amp; forecasts for favourable exchange rates. This comes as India registers a fall in its <a href="https://www.wionews.com/business-economy/indias-forex-reserves-fall-from-record-highs-733909">forex reserves</a> from the record-high of $656 billion.

All eyes are on the upcoming budget. Finance Minister Nirmala Sitharaman recently convened a high-level meeting with leading economists to chart the economic roadmap. The emphasis is expected to be on policy continuity across key sectors and fiscal discipline.

India's economic growth continues to expand despite a global slowdown. The HSBC's flash India Composite Purchasing Managers' Index (PMI) rose to 60.9 in June from last month's 60.

India's economic growth continues to expand despite a global slowdown. The HSBC's flash India Composite Purchasing Managers' Index (PMI) rose to 60.9 in June from last month's 60.5. This marks a faster expansion owing to growth in manufacturing and services sectors. But what's more exciting is the pace of job creation. The survey showed that the job creation was at its strongest in over 18 years. This comes as a welcome boost for the newly elected government. When the country is growing by over 8 per cent, it's critical to ensure a robust inflow of jobs in the market. Despite the optimistic numbers, ensuring that jobs continue to grow is paramount. India's export orders also registered substantial gains, marking the 22nd consecutive month of growth in June. The pace, however, slightly eased after record growth last month. Coming to India's price pressures, price increases eased since May, pointing out an improving retail inflation outlook. Service input costs also eased to a 4-month low. Although business confidence has weakened in the short term, the outlook for the year remains positive. Companies expect gains based on recent proposals, efficiency boosts, & forecasts for favourable exchange rates. This comes as India registers a fall in its forex reserves from the record-high of $656 billion. All eyes are on the upcoming budget. Finance Minister Nirmala Sitharaman recently convened a high-level meeting with leading economists to chart the economic roadmap. The emphasis is expected to be on policy continuity across key sectors and fiscal discipline.

India's economy gains momentum: Business activity jumps, job creation at 18-year high

India has placed orders for 1220 planes in less than two years. Of these planes, 850 are being made by Airbus. The European plane-makers has assembly facilities in five countries. What's stopping it from assembling in India- the country that has given it its record single order? #Gravitas deep dives.

Gravitas: Why Plane-maker Airbus must assemble in India

India is setting its sights on attracting a whopping $100 billion in annual foreign direct investment (FDI) in the coming years, according to Information Technology Minister Ashwini Vaishnaw.<o:p></o:p>

This is based on a Reuters report.<o:p></o:p>

In an interview at the World Economic Forum in Davos, Vaishnaw outlined a comprehensive growth strategy, foreseeing a consistent growth rate of 6-8 per cent over the next decade. <o:p></o:p>

The strategy revolves around four major engines: investment in physical and digital infrastructure, uplifting the bottom pyramid of the population, boosting manufacturing, and simplifying business processes to enhance the ease of doing business. <o:p></o:p>

Vaishnaw highlighted the key components of India's growth strategy, emphasising the significance of investment in infrastructure, both physical and digital.<o:p></o:p>

"We see 6-8 per cent consistent growth rate over the next full decade, and this is based on a very clearly thought-out strategy," he told Reuters. <o:p></o:p>

Foreign direct investment is a pivotal aspect of this plan, and Vaishnaw expressed optimism, asserting that India is now perceived as the "most important investment destination" by global investors. <o:p></o:p>

Despite previous critiques of Modi's protectionist policies, foreign investors, including major players like Apple, Samsung, Kia, and Airbus, have made substantial investments in India.<o:p></o:p>

India has been a magnet for foreign investment since Prime Minister Narendra Modi assumed office in 2014. Despite occasional criticism of protectionist policies, the country recorded FDI inflows of $33 billion in the first half of the current financial year and $71 billion in the 2022-23 financial year. <o:p></o:p>

The ambitious target of $100 billion in annual FDI is aimed at sustaining India's economic growth, which is projected to be the highest among major global economies at 7.3 per cent for the current financial year. <o:p></o:p>

This move aligns with Prime Minister Modi's efforts to attract investors ahead of the upcoming elections, addressing crucial issues such as unemployment among the youth.<o:p></o:p>

Vaishnaw drew a parallel with China's success in consistently attracting substantial FDI over more than a decade. <o:p></o:p>

He emphasised that investors now view India as the "most important investment destination". <o:p></o:p>

While India has made significant strides in various sectors, Vaishnaw underscored his role in overseeing India's push to become a powerhouse in electronics manufacturing, aligning with Modi's broader business agenda. <o:p></o:p>

He also highlighted ongoing efforts to enhance collaboration with Apple, aiming to boost the company's manufacturing and retail presence in India, where it currently contributes to approximately 12-14 per cent of global iPhone shipments.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

India is setting its sights on attracting a whopping $100 billion in annual foreign direct investment (FDI) in the coming years, according to Information Technology Minister Ashwini Vaishnaw.

India is setting its sights on attracting a whopping $100 billion in annual foreign direct investment (FDI) in the coming years, according to Information Technology Minister Ashwini Vaishnaw. This is based on a Reuters report. In an interview at the World Economic Forum in Davos, Vaishnaw outlined a comprehensive growth strategy, foreseeing a consistent growth rate of 6-8 per cent over the next decade. The strategy revolves around four major engines: investment in physical and digital infrastructure, uplifting the bottom pyramid of the population, boosting manufacturing, and simplifying business processes to enhance the ease of doing business. Vaishnaw highlighted the key components of India's growth strategy, emphasising the significance of investment in infrastructure, both physical and digital. "We see 6-8 per cent consistent growth rate over the next full decade, and this is based on a very clearly thought-out strategy," he told Reuters. Foreign direct investment is a pivotal aspect of this plan, and Vaishnaw expressed optimism, asserting that India is now perceived as the "most important investment destination" by global investors. Despite previous critiques of Modi's protectionist policies, foreign investors, including major players like Apple, Samsung, Kia, and Airbus, have made substantial investments in India. India has been a magnet for foreign investment since Prime Minister Narendra Modi assumed office in 2014. Despite occasional criticism of protectionist policies, the country recorded FDI inflows of $33 billion in the first half of the current financial year and $71 billion in the 2022-23 financial year. The ambitious target of $100 billion in annual FDI is aimed at sustaining India's economic growth, which is projected to be the highest among major global economies at 7.3 per cent for the current financial year. This move aligns with Prime Minister Modi's efforts to attract investors ahead of the upcoming elections, addressing crucial issues such as unemployment among the youth. Vaishnaw drew a parallel with China's success in consistently attracting substantial FDI over more than a decade. He emphasised that investors now view India as the "most important investment destination". While India has made significant strides in various sectors, Vaishnaw underscored his role in overseeing India's push to become a powerhouse in electronics manufacturing, aligning with Modi's broader business agenda. He also highlighted ongoing efforts to enhance collaboration with Apple, aiming to boost the company's manufacturing and retail presence in India, where it currently contributes to approximately 12-14 per cent of global iPhone shipments. (With inputs from Reuters)

India seeks $100 billion in annual FDI in coming years: Minister

India's manufacturing sector witnessed a mild slowdown in September, registering a five-month low, according to the S&amp;P Global India Manufacturing Purchasing Managers' Index (PMI), which slipped from 58.6 in August to 57.5.&nbsp;

A PMI reading of 50 signifies no change in activity levels. The Hindu report indicated that this shift was attributed to a softer increase in new orders, affecting production growth. Despite this moderation, both demand and output demonstrated significant improvements, leading to robust business confidence and a positive production outlook.&nbsp;

The Hindu quoted Pollyanna De Lima, the economics associate director at S&amp;P Global Market Intelligence, as saying, "Upbeat forecasts continued to drive job creation efforts and initiatives to replenish input stocks. Together, these indices point towards a favourable trajectory for the Indian manufacturing industry." &nbsp;

However, De Lima also warned about the notable increase in output charges, which, despite decreasing cost pressures, may hinder future sales prospects.&nbsp;

According to a report by The Economic Times, she also said that the slowdown in manufacturing activity was driven by a softer increase in new orders, which tempered production growth.&nbsp;

Nevertheless, the manufacturing industry in India remains robust, with substantial growth in new orders and production in September. This surge in activity can be attributed to strong demand, both domestically and internationally. Notably, international demand has been expanding for the 18th consecutive month, reflecting a positive trend.&nbsp;

The encouraging demand dynamics have fostered a highly positive outlook among businesses. This optimism has translated into a notable boost in hiring, with the employment index reaching its highest level since November. Although employment growth remains moderate, the index has consistently stayed above 50 for six consecutive months, indicating continued expansion.&nbsp;

Despite the buoyant demand, input costs saw only a mild increase in September, marking the weakest pace in over three years. Participants noted lower prices for commodities such as aluminium and oil. However, strong demand has prompted companies to raise their selling prices. The output charges index has risen, primarily driven by higher labour costs, surpassing its long-run average. This surge in output charges has raised concerns about potential inflationary pressures.&nbsp;

Considering these developments, the trajectory of India's manufacturing sector in the coming months will be closely watched. The ability to balance rising output charges and strong demand while navigating inflation concerns will be pivotal in sustaining the industry's growth.&nbsp;

WATCH WION LIVE HERE

<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="350" src="https://www.wionews.com/live-tv/embed?autoplay=1&amp;mute=1" width="100%"></iframe>

India's manufacturing sector witnessed a mild slowdown in September, registering a five-month low, according to the S&P Global India Manufacturing Purchasing Managers' Index (PMI), which slipped from 58.

India's manufacturing sector witnessed a mild slowdown in September, registering a five-month low, according to the S&P Global India Manufacturing Purchasing Managers' Index (PMI), which slipped from 58.6 in August to 57.5. A PMI reading of 50 signifies no change in activity levels. The Hindu report indicated that this shift was attributed to a softer increase in new orders, affecting production growth. Despite this moderation, both demand and output demonstrated significant improvements, leading to robust business confidence and a positive production outlook. The Hindu quoted Pollyanna De Lima, the economics associate director at S&P Global Market Intelligence, as saying, "Upbeat forecasts continued to drive job creation efforts and initiatives to replenish input stocks. Together, these indices point towards a favourable trajectory for the Indian manufacturing industry." However, De Lima also warned about the notable increase in output charges, which, despite decreasing cost pressures, may hinder future sales prospects. According to a report by The Economic Times, she also said that the slowdown in manufacturing activity was driven by a softer increase in new orders, which tempered production growth. Nevertheless, the manufacturing industry in India remains robust, with substantial growth in new orders and production in September. This surge in activity can be attributed to strong demand, both domestically and internationally. Notably, international demand has been expanding for the 18th consecutive month, reflecting a positive trend. The encouraging demand dynamics have fostered a highly positive outlook among businesses. This optimism has translated into a notable boost in hiring, with the employment index reaching its highest level since November. Although employment growth remains moderate, the index has consistently stayed above 50 for six consecutive months, indicating continued expansion. Despite the buoyant demand, input costs saw only a mild increase in September, marking the weakest pace in over three years. Participants noted lower prices for commodities such as aluminium and oil. However, strong demand has prompted companies to raise their selling prices. The output charges index has risen, primarily driven by higher labour costs, surpassing its long-run average. This surge in output charges has raised concerns about potential inflationary pressures. Considering these developments, the trajectory of India's manufacturing sector in the coming months will be closely watched. The ability to balance rising output charges and strong demand while navigating inflation concerns will be pivotal in sustaining the industry's growth. WATCH WION LIVE HERE

India's manufacturing growth slows to five-month low in September: Report 

The Indian government is looking to provide incentives worth 180 million rupees ($2.2 billion) to stimulate local manufacturing. According government officials who spoke to Reuters, the incentives will support six new industries including chemicals, shipping containers and material for vaccines.

The offer is a component of the nation's 1.97 trillion rupee production-linked incentive scheme (PLI), which was launched in 2020 and targets 14 industries, from drones to electrical items, but it has been successful only in limited sectors.

As only a small portion of the PLI incentives have been utilised until now, the government has decided to transfer leftover funds to new industries.

According to the two government officials in contact with Reuters, limited expenses under the system might result in "large" savings that could be applied to new industries.

Toys, bicycles, leather, and footwear are among the additional six industries that could join the PLI programme, according to the officials. According to them, these sectors will split the 180 billion rupee portion that is being taken from the scheme's initial budget.

India believes that the PLI scheme will be essential to strengthen the country's overall economy, which has been suffering from a lack of private investment for almost ten years and is having difficulty producing enough jobs, specifically in the manufacturing sector.

In the fiscal year that concluded in March, incentives worth a combined total of roughly 29 billion rupees were given out. According to a government assessment seen by Reuters, little has been paid to companies in industries including specialty steel products, solar modules, and automobile components.

One of the two officials told Reuters, that as per government reports, the payouts might increase to nearly 110 billion rupees in the current fiscal year and to 400 billion rupees by the fiscal year 2024/25.

The official further told Reuters that “the disbursements should be better than this estimate after some tweaks to the scheme,” adding that these adjustments will assist in speeding up the payouts and some industries may get an extra year or two under the scheme.

(With inputs from Reuters)

WATCH WION LIVE HERE

<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="350" src="https://www.wionews.com/live-tv/embed?autoplay=1&amp;mute=1" width="100%"></iframe>

The Indian government is looking to provide incentives worth 180 million rupees ($2.2 billion) to stimulate local manufacturing. According government officials who spoke to Reuters, the incentives will support six new industries including chemicals, shipping containers and material for vaccines.

The Indian government is looking to provide incentives worth 180 million rupees ($2.2 billion) to stimulate local manufacturing. According government officials who spoke to Reuters, the incentives will support six new industries including chemicals, shipping containers and material for vaccines. The offer is a component of the nation's 1.97 trillion rupee production-linked incentive scheme (PLI), which was launched in 2020 and targets 14 industries, from drones to electrical items, but it has been successful only in limited sectors. As only a small portion of the PLI incentives have been utilised until now, the government has decided to transfer leftover funds to new industries. According to the two government officials in contact with Reuters, limited expenses under the system might result in "large" savings that could be applied to new industries. Toys, bicycles, leather, and footwear are among the additional six industries that could join the PLI programme, according to the officials. According to them, these sectors will split the 180 billion rupee portion that is being taken from the scheme's initial budget. India believes that the PLI scheme will be essential to strengthen the country's overall economy, which has been suffering from a lack of private investment for almost ten years and is having difficulty producing enough jobs, specifically in the manufacturing sector. In the fiscal year that concluded in March, incentives worth a combined total of roughly 29 billion rupees were given out. According to a government assessment seen by Reuters, little has been paid to companies in industries including specialty steel products, solar modules, and automobile components. One of the two officials told Reuters, that as per government reports, the payouts might increase to nearly 110 billion rupees in the current fiscal year and to 400 billion rupees by the fiscal year 2024/25. The official further told Reuters that “the disbursements should be better than this estimate after some tweaks to the scheme,” adding that these adjustments will assist in speeding up the payouts and some industries may get an extra year or two under the scheme. (With inputs from Reuters) WATCH WION LIVE HERE

India to provide incentives worth $2 bn towards local manufacturing sectors

India has set its eyes on becoming a factory to the world with abundant labour. A seismic shift shift in manufacturing from China and the boom of infrastructure that's making India an attractive destination for manufacturing but there's one more challenger. Watch the video to know more.

What India needs to do to 'Make for the world'; labour crisis risks India's manufacturing dream

Mitsubishi Electric Corporation, the 102-year-old Japanese firm, will be investing $236 million (Rs 1,891 crore) to set up a facility in India to manufacture room air-conditioners and compressors. The foundation stone for the factory was laid virtually&nbsp;by Tamil Nadu Chief Minister MK Stalin&nbsp;in the presence of top officials from the Japanese firm. Situated in the Thiruvallur district near Chennai, the factory is expected to commence production by October 2025.&nbsp;

The Japanese firm signed a Memorandum of Understanding with the Tamil Nadu Government, regarding their plan to invest $236 million as a 100 per cent foreign direct investment.

Spread across 52 acres, their new factory, which is also their first to manufacture room ACs and compressors in India, is expected to offer employment to more than 2,000 people. The firm hopes to roll out 3,00,000 ACs and 6,50,000 compressors per year, and these products are meant to cater to local demand and exports.

<a href="https://www.wionews.com/world/mitsubishi-electric-ceo-to-quit-over-long-running-data-deceit-395541">ALSO READ |&nbsp;Mitsubishi Electric CEO to quit over long-running data deceit</a>

Speaking at the event, Tamil Nadu Chief Minister MK Stalin said that Tamil Nadu is home to three of the 12 Japan Industrial Townships (JIT) in India, as part of the Japan-India Investment Promotion Partnership.

He also highlighted that Tamil Nadu was home to the highest number of Japanese expatriates in India. He also made a mention of his impending visit to Singapore and Japan later this month, to attract investors to the state.

(With inputs from agencies)

WATCH WION LIVE HERE:&nbsp;

<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="350" loading="”lazy”" src="https://www.wionews.com/live-tv/embed?autoplay=1&amp;mute=1" width="100%"></iframe>

Mitsubishi Electric Corporation, the 102-year-old Japanese firm, will be investing $236 million (Rs 1,891 crore) to set up a facility in India to manufacture room air-conditioners and compressors.

Mitsubishi Electric Corporation, the 102-year-old Japanese firm, will be investing $236 million (Rs 1,891 crore) to set up a facility in India to manufacture room air-conditioners and compressors. The foundation stone for the factory was laid virtually by Tamil Nadu Chief Minister MK Stalin in the presence of top officials from the Japanese firm. Situated in the Thiruvallur district near Chennai, the factory is expected to commence production by October 2025. The Japanese firm signed a Memorandum of Understanding with the Tamil Nadu Government, regarding their plan to invest $236 million as a 100 per cent foreign direct investment. Spread across 52 acres, their new factory, which is also their first to manufacture room ACs and compressors in India, is expected to offer employment to more than 2,000 people. The firm hopes to roll out 3,00,000 ACs and 6,50,000 compressors per year, and these products are meant to cater to local demand and exports. ALSO READ | Mitsubishi Electric CEO to quit over long-running data deceit Speaking at the event, Tamil Nadu Chief Minister MK Stalin said that Tamil Nadu is home to three of the 12 Japan Industrial Townships (JIT) in India, as part of the Japan-India Investment Promotion Partnership. He also highlighted that Tamil Nadu was home to the highest number of Japanese expatriates in India. He also made a mention of his impending visit to Singapore and Japan later this month, to attract investors to the state. (With inputs from agencies) WATCH WION LIVE HERE:

Japan’s Mitsubishi Electric to invest $235mn in AC factory in India; to start production by Oct 2025

Prime Minister Narendra Modi on Thursday urged global investors to invest in India's infrastructure and manufacturing sector as his government aims to attract up to $1.5 trillion into ports, roads and other projects.

"If you want returns with reliability, India is the place to be," Modi told a virtual conference of 20 major global investors, including pension funds.

He said India would offer lower tax rates, tax incentives to manufacturers along with ease of doing business while following a path of fiscal prudence.&nbsp;

Speaking at virtual Global Investor Roundtable, Prime Minister Narendra Modi on Thursday said that India will be a global manufacturing powerhouse soon.

The Prime Minister said, "Through this year, as India bravely fought the global pandemic, the world saw India's national character. The world also saw India's true strengths."

"We will do whatever it takes to make India engine of global growth resurgence. India offers democracy, demography, demand and diversity," he added. 
 
Talking about the situation of coronavirus in a country he said that India has shown remarkable resilience in this pandemic, be it fighting the virus or ensuring eco stability.

(With inputs from agencies)

Prime Minister Narendra Modi on Thursday urged global investors to invest in India's infrastructure and manufacturing sector as his government aims to attract up to $1.

Prime Minister Narendra Modi on Thursday urged global investors to invest in India's infrastructure and manufacturing sector as his government aims to attract up to $1.5 trillion into ports, roads and other projects. "If you want returns with reliability, India is the place to be," Modi told a virtual conference of 20 major global investors, including pension funds. He said India would offer lower tax rates, tax incentives to manufacturers along with ease of doing business while following a path of fiscal prudence. Speaking at virtual Global Investor Roundtable, Prime Minister Narendra Modi on Thursday said that India will be a global manufacturing powerhouse soon. The Prime Minister said, "Through this year, as India bravely fought the global pandemic, the world saw India's national character. The world also saw India's true strengths." "We will do whatever it takes to make India engine of global growth resurgence. India offers democracy, demography, demand and diversity," he added. Talking about the situation of coronavirus in a country he said that India has shown remarkable resilience in this pandemic, be it fighting the virus or ensuring eco stability. (With inputs from agencies)

India will be a global manufacturing hub soon, says PM Modi

India's manufacturing output contracted 20.6 per cent in March from a year earlier, indicating the impact of the nationwide lockdown imposed to contain the coronavirus outbreak -- and also&nbsp;fanning hopes that the central bank will ease rates further to kick-start the economy amid the crisis.

The data was presented by the government on Tuesday.

The 20.6% fall in manufacturing was driven by the closure of thousands of factories after the government imposed a national lockdown in the last week of March.

Industrial output, which includes manufacturing and mining, contracted 16.7 per cent for the corresponding period, compared to analysts' forecast of 8.7 per cent fall in a Reuters poll.

The industrial output for the fiscal year 2019/20 ending March contracted 0.7 per cent over the corresponding period of the previous year.

Private economists and rating agencies say India's economy could contract by up to 0.5% in the current financial year beginning April, compared with earlier government estimates of around 6% growth. This is likely to encourage the Reserve Bank of India (RBI) to ease rates and pump in more liquidity.

In April, the unemployment rate rose to 23.5% from 8.7% the previous month, data released by the Centre for Monitoring Indian Economy, a Mumbai-based think tank, showed.

Meanwhile, the ministry of statistics said the Indian government did not release headline retail inflation figures for the month of April due to inadequate data collection.

The data are usually collected from 1,114 urban markets and 1,181 villages through personal visits, which have been suspended since March 19 due to the lockdown announced by the government to contain the spread of the coronavirus.

Modi’s government is starting to pull back from one of the world’s tightest lockdowns of 1.3 billion people that has left millions out of work and stranded in cities far from home while infections keep rising.

India’s coronavirus infections have crossed 70,000, including 2,293 deaths.

(with inputs from Reuters)

India's manufacturing output contracted 20.6 per cent in March from a year earlier, indicating the impact of the nationwide lockdown imposed to contain the coronavirus outbreak -- and also fanning hopes that the central bank will ease rates further to kick-start the economy amid the crisis.

India's manufacturing output contracted 20.6 per cent in March from a year earlier, indicating the impact of the nationwide lockdown imposed to contain the coronavirus outbreak -- and also fanning hopes that the central bank will ease rates further to kick-start the economy amid the crisis. The data was presented by the government on Tuesday. The 20.6% fall in manufacturing was driven by the closure of thousands of factories after the government imposed a national lockdown in the last week of March. Industrial output, which includes manufacturing and mining, contracted 16.7 per cent for the corresponding period, compared to analysts' forecast of 8.7 per cent fall in a Reuters poll. The industrial output for the fiscal year 2019/20 ending March contracted 0.7 per cent over the corresponding period of the previous year. Private economists and rating agencies say India's economy could contract by up to 0.5% in the current financial year beginning April, compared with earlier government estimates of around 6% growth. This is likely to encourage the Reserve Bank of India (RBI) to ease rates and pump in more liquidity. In April, the unemployment rate rose to 23.5% from 8.7% the previous month, data released by the Centre for Monitoring Indian Economy, a Mumbai-based think tank, showed. Meanwhile, the ministry of statistics said the Indian government did not release headline retail inflation figures for the month of April due to inadequate data collection. The data are usually collected from 1,114 urban markets and 1,181 villages through personal visits, which have been suspended since March 19 due to the lockdown announced by the government to contain the spread of the coronavirus. Modi’s government is starting to pull back from one of the world’s tightest lockdowns of 1.3 billion people that has left millions out of work and stranded in cities far from home while infections keep rising. India’s coronavirus infections have crossed 70,000, including 2,293 deaths. (with inputs from Reuters)

India's manufacturing output contracts 20.6% in March

India is planning to restart some manufacturing after April 15 to help offset the economic damage of a nationwide coronavirus lockdown, two government sources said, even as it weighs extending the lockdown.

India may resume manufacturing operations

<a href="https://www.wionews.com/business-economy/indias-manufacturing-growth-hits-3-month-high-1565">India's manufacturing activity</a> expanded at its quickest pace in nearly eight years in January with robust growth in new orders and output, a private survey showed on Monday, suggesting the economy may be getting back on firmer footing.

In response to the jump in sales, factories hired new workers at the fastest rate in more than seven years.

If sustained, the improvement in business conditions could point to a gradual economic recovery in the coming months, as forecast by analysts in a Reuters poll last month, after growth slowed to a more than six-year low in <a href="https://www.wionews.com/world/china-fourth-quarter-gdp-grows-6-in-line-with-expectations-and-hovering-near-30-year-low-274764">July-September quarter</a>.

The Nikkei Manufacturing Purchasing Managers' Index, compiled by IHS Markit, jumped to 55.3 last month from 52.7 in December. It was the highest reading since February 2012 and above the 50-mark separating growth from contraction for the 30th straight month.

"The PMI results show that a notable rebound in demand boosted the growth of sales, input buying, production and employment as firms focused on rebuilding their inventories and expanding their capacities in anticipation of further increases in new business," Pollyanna De Lima, principal economist at IHS Markit, said in a news release.

A new orders sub-index that tracks overall demand hit its highest level since December 2014 and output grew at its fastest pace in over seven and a half years, pushing manufacturers to hire at the strongest rate since August 2012.

Meanwhile, both input costs and output prices rose at a slower pace, indicating overall inflation may have eased after hitting a more than five year high of 7.35 per cent&nbsp;in December, although probably not below the <a href="https://www.wionews.com/business-economy/nominal-gdp-growth-for-2020-21-estimated-at-10-per-cent-says-fm-sitharaman-277995">Reserve Bank of&nbsp;India</a>'s medium-term target of 4 per cent.

That might keep the central bank, which cut its key interest rate by a cumulative 135 basis points last year, on the sidelines over the coming months.

"To complete the good news, there was also an uptick in business confidence as survey participants expect buoyant demand, new client wins, advertising and product diversification to boost output in the year ahead," added De Lima.

India's manufacturing activity expanded at its quickest pace in nearly eight years in January with robust growth in new orders and output, a private survey showed on Monday, suggesting the economy may be getting back on firmer footing.

India's manufacturing activity expanded at its quickest pace in nearly eight years in January with robust growth in new orders and output, a private survey showed on Monday, suggesting the economy may be getting back on firmer footing. In response to the jump in sales, factories hired new workers at the fastest rate in more than seven years. If sustained, the improvement in business conditions could point to a gradual economic recovery in the coming months, as forecast by analysts in a Reuters poll last month, after growth slowed to a more than six-year low in July-September quarter. The Nikkei Manufacturing Purchasing Managers' Index, compiled by IHS Markit, jumped to 55.3 last month from 52.7 in December. It was the highest reading since February 2012 and above the 50-mark separating growth from contraction for the 30th straight month. "The PMI results show that a notable rebound in demand boosted the growth of sales, input buying, production and employment as firms focused on rebuilding their inventories and expanding their capacities in anticipation of further increases in new business," Pollyanna De Lima, principal economist at IHS Markit, said in a news release. A new orders sub-index that tracks overall demand hit its highest level since December 2014 and output grew at its fastest pace in over seven and a half years, pushing manufacturers to hire at the strongest rate since August 2012. Meanwhile, both input costs and output prices rose at a slower pace, indicating overall inflation may have eased after hitting a more than five year high of 7.35 per cent in December, although probably not below the Reserve Bank of India's medium-term target of 4 per cent. That might keep the central bank, which cut its key interest rate by a cumulative 135 basis points last year, on the sidelines over the coming months. "To complete the good news, there was also an uptick in business confidence as survey participants expect buoyant demand, new client wins, advertising and product diversification to boost output in the year ahead," added De Lima.

India's January manufacturing activity hits near eight-year-high as orders jump

India's GDP growth slowed down to 5 per cent in the first quarter of the financial year FY20&nbsp;indicating that that slowdown in the Indian economy persists.

The GDP growth fell from 5.8 per cent to 5 per cent in the April to June period in 2019.

In May, the government had announced India's GDP figures for January-March quarter of 2018-19&nbsp;had slipped to 5.8 per cent against 6.6 per cent in the third quarter due to poor performance in agriculture and manufacturing sectors.

The Central Statistics Office (CSO) had said that GDP growth during 2018-19 fiscal had stood at 6.8 per cent&nbsp;lower than 7.2 per cent in the previous financial year.

India's GDP growth slowed down to 5 per cent in the first quarter of the financial year FY20 indicating that that slowdown in the Indian economy persists. The GDP growth fell from 5.

India's GDP growth slowed down to 5 per cent in the first quarter of the financial year FY20 indicating that that slowdown in the Indian economy persists. The GDP growth fell from 5.8 per cent to 5 per cent in the April to June period in 2019. In May, the government had announced India's GDP figures for January-March quarter of 2018-19 had slipped to 5.8 per cent against 6.6 per cent in the third quarter due to poor performance in agriculture and manufacturing sectors. The Central Statistics Office (CSO) had said that GDP growth during 2018-19 fiscal had stood at 6.8 per cent lower than 7.2 per cent in the previous financial year.

India's GDP growth falls to 5 per cent in April-June 2019