Decrease in the manufacturing sector seen in December
Decrease in the manufacturing sector seen in December
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Indian manufacturing activities have seen a slight decline in the month of December compared to the previous month. But the index dropped sharply in the monthly comparison.

The joint index of government-owned State Bank of India (SBI) is an indicator of manufacturing activity, which helps in estimating the contraction and expansion period.   

According to the bank's latest report, "The annual SBI Joint Index was 53.1 (Medium Growth) on December 17, while it was 53.0 (Medium Growth) in the month of November 17. In December, compared to 51.2 (Low Growth) in November, MOM Month-to-month) index was 50.6 (low growth)."   

The research report written by the bank's Chief Economic Advisor, Soumya Kanti Ghosh said, "It is a sign of a possible recession in the next few months by the IIP (Industrial Index of Industrial Production - government data growth)." 

The combined index consists of two indices - SBI monthly joint index and SBI annual joint index. The report says, "The constant negative (positive) month-to-month estimate in the index will lead to negative (positive) growth rates in the year-to-year index." 

Ghosh said, "Although we believe that the speed may be slow, but the perspective for some areas is quite positive, and one such area is the fertilizer field."

According to SBI, financial institutions of 26 fertilizer companies have reported improvement in operating in the first half of the current financial year and in terms of net profit growth.  

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