Imports of heavy machinery and equipment on which our manufacturing and other industries are crucially dependent have been going down. The import of these capital goods is important for maintaining a threshold on output expansion, as many sectors that feature in India’s major exports are also in India’s top imports.
In March 2021 the IHS Markit India Manufacturing Purchasing Managers’ Index (PMI) slipped to a seven-month low of 55.4 from 57.5 in February 2021. Data for April indicates a slight improvement to 55.5 after declining to a seven-month low in March at 55.4. According to a survey conducted by United Nations Industrial Development Organization (UNIDO), after the lockdown was imposed last year, manufacturing in India had stopped, except for the rice milling sector where production reportedly dropped by half. In manufacturing, some of the most affected industries have been metals and chemical products, motor vehicles, machinery and equipment, textiles, etc.
The statistics below is from Industry data available on pre-Corona virus impact.