India’s economy shows signs of recovery as factory activity rises in July

India's factory activity has rebounded sharply in July after contracting in April. While it indicates that the country's economy is recovering after the second Covid wave, there are some hurdles that could disrupt the trend.

India’s economy has shown signs of recovery in July as factory activity rebounded on the back of rising domestic and international demand. The recovery in manufacturing has prompted companies to create new jobs after a deadly second wave of the Covid-19 pandemic disrupted the economy. The Manufacturing Purchasing Managers’ Index (PMI), compiled by IHS Market, jumped to 55.3 in July from 48.1 in June. It may be noted that anything above the 50-level is considered as growth.