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Improvement in factory output in Nov.

The IHS Markit India Manufacturing PMI rose to 51.2 in November from 50.6 in October, remaining above the 50-mark threshold, indicating an expansion. While this is a reason to celebrate as it had fallen to a two-year low back in October, the month of November saw firms shedding jobs (owing to subdued sales) for the first time in 20 months. Numerous companies indicated that workloads had been managed by existing staff, while others cited the non-replacement of retirees and non-renewal of temporary contracts.

“Some level of uncertainty regarding the economy was evident by a subdued degree of business optimism. Also, companies shed jobs for the first time in over a year-and- a-half and there was another round of reduction in input buying,” stated Pollyanna de Lima, Principal Economist at IHS Markit.