According to the IHS Markit purchasing managers index (PMI) survey, India’s manufacturing activity witnessed an unprecedented contraction in the month of April due to the lockdown across the country in order to contain the spread of the virus which led to a slump in demand and caused massive supply chain disruptions. The data reflects a sharp contraction in India’s manufacturing output while a sharp drop in demand has led to the collapse of new businesses and led to a sharp hike in the rate of unemployment.
PMI number for April 2020 was 27.4 sharply contracting by 47 percent as against PMI of 51.8 in the month of March which is largely affected by factors like zero auto sales. However, the impact of lockdown on manufacturing & the economy in India in April is even more havoc and a strong recovery in the demand for steel in the month of May is unlikely
