As a result of softening demand and output, in a survey on Thursday, it has been shown that Indian manufacturing activity slowed more than expected to a seven-month low in September. The Nikkei Manufacturing Purchasing Managers’ Index (PMI), compiled by Markit, fell to 51.2 in September from 52.3 in August and against predictions of 52. A reading above 50 indicates expansion.
In order to enhance the economy in the country, the Reserve Bank of India (RBI) cut its benchmark rate by a larger than expected 50 basis points to a four-and-a-half low of 6.75% on Tuesday. It also downgraded its growth estimates for this fiscal year to 7.4% from 7.6%.Weak inflation has helped RBI ease policy aggressively this year and the survey showed price pressures could remain subdued in the months ahead.
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