Manufacturing Industry Will Get Strength During Festive Season
Manufacturing Industry will get strength due to an increase in demand, and consumers are also expected to get relief, Production will increase during the festive season.
The Finance Ministry believes that there can be good growth in manufacturing in the festive season.
Because the prices of industrial commodities have been declining for the last few months and consumer demand will also increase during the festive season.
The ministry believes that consumer consumption will increase in both rural and urban areas.
Due to lower prices of industrial commodities, consumers will not have to buy goods at higher prices during the festive season.
Manufacturing Industry will get strength: Manufacturing units will get stronger.
The RBI survey also said that in the second quarter (July-September) of the current financial year, there will be an increase in production and new orders of manufacturing units.
The double-digit growth in manufacturing and capital goods for the past three months is also indicating a pick-up in manufacturing.
The festive season is starting from the month of September and will last till the end of the year.
Rural demand is expected to increase.
According to the latest report of the Finance Ministry, the southwest monsoon is helping the Kharif sowing and the increase in the minimum support price is likely to boost rural demand.
According to the ministry, people are no longer avoiding the connectivity sector and people are going to hotels and restaurants with open excursions. This will increase the consumption of urban areas.
Continuous increase in PMI.
According to the ministry, industries like tourism, and hotels are once again reaching the pre-Corona period.
The Purchasing Managers Index (PMI) of the services sector has been rising steadily for the past two months.
After the start of the Russia-Ukraine war in late February this year, the prices of industrial commodities like steel, copper, aluminum, zinc, and silver increased.
But since June, the prices of these commodities have been declining continuously.
Global prices continue to fall.
Global prices of crude oil are also decreasing continuously.
According to industrial manufacturers, they will now be manufacturing at their full capacity during the festive season as their cost has come down. Their margins will also not be affected due to low cost.
Consumers are also expected to get relief.
According to consumer durables and retail traders, due to reduced cost, the prices of goods will not increase now and consumers may get relief on some items.
On the other hand, the government is also continuously investing in the economy.
1.75 lakh crore has been spent in the first quarter as capital expenditure and this will also generate new demand in the economy.
