India's Index of Industrial Production (IIP)growth is still a matter of concern though the manufacturing index turned to a positive trend in April, report media, quoting Moody's Economy.Com.
Activities of Indian factories are recovering after five months with swelling orders in the pipeline, reported a survey. The ABN AMRO Bank purchase Managers index (PMI), based on a survey of 500 companies, rose 53.3% in April from the 49.5% reported in March.
Sherman Chan, an economist with Moody's Economy.com said that though the external demand has risen in the past months, it was expected to stabilize by the year-end and it was estimated that a strong recovery in exports was unlikely before the next year. The export-oriented manufacturers were facing dull business whether for some time, he added.
Moody's Economy.com said that the domestic support for the industrial sector was weak, as funding for infrastructure projects was limited. The government planned public-private partnerships to fund infrastructure projects but the prevailing scenario was preventing the progress due to poor response from the private sector and risk-averse foreign firms.
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