India's manufacturing sector witnessed a gradual but significant expansion during the year 2014 and ended on a higher note reaching two-year high in December, according to an HSBC survey.
This gradual expansion is expected to continue further this year as well, analysts believe. India's manufacturing PMI rose to 54.5 in December, 2014, while in the corresponding period a year ago it stood at 50.7, just above the crucial 50 mark which separates growth from contraction. Overall, the PMI data suggest a gradual expansion in the manufacturing sector and signal robust growth at Indian goods producers.
"Indian goods producers ended 2014 in a higher gear, with business conditions improving at the quickest pace in two years in December," HSBC said in a research note. "Manufacturing activity momentum accelerated to a two-year high in December, led by a healthy increase in new orders from both at home and from abroad," Pranjul Bhandari, Chief India Economist at HSBC said. Commenting on the PMI data, Japanese brokerage firm Nomura said overall, the PMI data suggest a gradual expansion in the manufacturing sector.