Indian manufacturing growth slows amid global contraction
IDFC First Bank, cautioned that going into 2024, manufacturers may get less support from softening prices, which could hurt the industry's profits. “Listed company profits have been strong in 2023, supported by reducing input cost pressures, which has countered the slowdown in nominal sales growth.
In 2024, the support from input cost reduction could be less as prices have already softened considerably in 2023," she said. For the fourth month in a row, the rate of charge inflation surpassed that of input prices as companies raised selling prices in December.
If business momentum doesn't pick up pace, it could weigh on the sector’s pricing power, reducing the scope for sharp price increases. However, as things stand, Indian manufacturing firms are upbeat on production in the year ahead.
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