Storm of Indian economy at 1

According to the Mehr News Agency, the results of the Indian Shopping Managers' Index poll show that factory activities in India have been strong at the beginning of the new year. This encouraged companies to hire at an unprecedented labor rate.

The news can be promising for the third -largest Asian economy in the past few seasons and consumption is still weak.

The final index of India's factory buyers, set by HSBC and S&P Global, reached 4.3 in January, which is higher than the lowest level in December, which was the lowest level in the last 6 months. This number was slightly lower than the initial prediction, which showed an increase to 1. This index has remained above Level 2, which is the boundary of the separation of expansion and contraction.

Poanjol DivineIndia's senior economist at HSBC said the Indian production index in January reached its highest six months. Both domestic demand and export were strong and supported the growth of new orders. New orders, an indicator of overall demand, have experienced the fastest growth since July, due to the strong export orders caused by rapid growth over the past five years. The sub -index of production also reached its highest level in three months.

This increased trust in the future in the next twelve months, with companies expanding their workforce hiring at the fastest rate since March. Reducing inflation stress has also helped this. Input prices rose slowly over the past year, allowing companies to raise their sales prices at a slower speed last month. This is a good news because public inflation remains higher than the medium -term target of the central bank in the past year.

The majority of economists in the Reuters poll predicted that the Central Bank of India would reduce its base interest rates after the February 1-8 session, to 5 % of the base.

Meanwhile, India reduced personal tax rates in its annual budget announced last week. The move shows that the world's fifth -largest economy seeks to strengthen domestic demand in a situation where the global economic outlook is ambiguous because of the possibility of new trade barriers.