China...US...France remain behind India as New Delhi races ahead in....
PM Modi- File image
In a great update for India amid the decline in India-Pakistan tensions, India has reached the top of the global charts in both manufacturing and service activities. When the tensions between India and Pakistan were on a rise and the global economy was expected to slow down as a result of tariff war started by US President Donald Trump, the data of Purchasing Managers Index (PMI) released by JP Morgan has indicated a massive positive for India. Here are all the details you need to know. India ahead of China and Pakistan
India's services sector continued to grow in April, with the Services Purchasing Managers' Index (PMI) rising slightly to 58.7 from 58.5 in March, an HSBC report said on Tuesday. For those unversed, a PMI reading above 50 indicates expansion, while anything below signals contraction. The increase points to steady improvement in the services sector, supported by a sharp rise in new business orders, according to HSBC India Composite PMI Output Index.
For a point of comparison, China's manufacturing PMI tracked by the National Bureau of Statistics (NBS) was at 49 in April and according to ISM the US Manufacturing PMI was only 48.7 in April 2025, while the Service PMI. On the other hand, France only has a manufacturing PMI at 48.7. Strong market demand
Many companies reported strong market demand and successful marketing strategies, while others said they were able to handle more work due to better efficiency. The finance and insurance sector led the growth, showing the highest gains in both output and new orders.
Export demand also picked up significantly. After a temporary slowdown in March, new export orders rose at their fastest pace since July 2024, driven by increased interest from markets in Asia, Europe, West Asia, and the United States. This contributed to improved margins for service providers, as easing cost pressures allowed companies to raise prices at a quicker pace.
Manufacturing also showed improvement, with the HSBC India Manufacturing PMI inching up to 58.2 from 58.1 in March, hitting a 10-month high. This follows a 14-month low in February. The rebound in April was fuelled by higher production, more hiring, and increased purchasing of inputs.
(With inputs from agencies)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
42 minutes ago
- Mint
Critical minerals will remain a problem in US-China talks. These industries are at risk.
Critical minerals will likely remain a source of leverage for Beijing in trade talks with the U.S., even if President Donald Trump's Thursday call with Xi Jinping speeds up the flow of rare earths to feed auto, industrial and other supply chains. The issue dates back to early April, when China imposed restrictions on exports of the metals as part of its retaliation against Trump's imposition of tariffs of up to 145% on its exports to the U.S. In mid May, after negotiators met in Geneva, the U.S. said China had agreed to lift the restrictions as the countries agreed to a 90-day pause on levies that were choking off trade between them. The problem is that while China is allowing exports of rare earths, used in magnets that go into automobiles, for example, companies that want to export them need licenses. Companies say they aren't easy to get, though Reuters reported on Friday that Beijing had granted temporary licenses to suppliers of the big three U.S. auto makers. Its report cited people familiar with the matter. A spokesperson from the Chinese embassy said he wasn't aware of the situation specifically related to the licensing, reiterating that the export control measures are in line with international common practices, nondiscriminatory, and not targeted at specific countries. While only a fraction of the members of the American Chamber of Commerce in China—mostly technology and industrial companies—were affected by rare-earth export restrictions, three-quarters of those said their supplies would run out within three months, according to a survey from the trade group. While the survey found that Chinese suppliers to U.S. companies had recently been granted six-month export licenses, they noted continued uncertainty because there is a large backlog of license applications. Gracelin Baskaran, a mining economist and director of the Critical Minerals Security Program at the Center for Strategic and International Studies, said about 25% of licenses applied for have been given out, but that they aren't being processed fast enough. Part of that is due to the administrative task. China is the source of 100% of the rare-earth processing capability in the world, so it is issuing licenses for exports not just to the U.S., but for many other countries. But it could also be part of the negotiations. 'China has made it very clear it's not satisfied with the 90-day tariff pause and looking for a more durable solution to the tariff conundrum," said Baskaran, noting the deflationary impact of the tariffs on China's economy. 'It's not in their incentive to give out licenses quickly as their economy is in a downward spiral. These licenses are their leverage." The U.S. had been the dominant rare-earth producer until the 1990s, but China steadily took market share, ramping up production to levels that made it unprofitable for others, forcing them out, Baskaran said. A similar phenomenon is currently under way in nickel, she U.S. has been producing rare earths in California and is building out separation and processing capabilities, with companies like MP Materials boosting their refining abilities. 'It's a perfectly solvable problem and one the U.S. is working at warp speed to address," Baskaran said. 'It's not a forever problem." That said, it could continue be a source of pain, leaving the U.S. vulnerable in talks with China. An array of industries reliant on these critical minerals, from autos to electronics, semiconductors, and defense, are likely to suffer. Write to Reshma Kapadia at
&w=3840&q=100)
Business Standard
an hour ago
- Business Standard
Tighter H-1B rules, tech layoffs push Indians to alternate US visas
As scrutiny around H-1B work visa applications intensifies and tech layoffs continue to rattle the US job market, Indian professionals and their employers are increasingly exploring alternative visa routes to live and work in the US, reported The Economic Times. Among the most sought-after options now are the L-1 and O-1 non-immigrant visas. Simultaneously, there's a significant uptick in interest for the EB-5 immigrant investor visa programme. 'These trends aren't entirely new, but we've seen a sharp rise in the number of people reaching out over the past few months,' Gnanamookan Senthurjothi, a US immigration attorney, told The Economic Times. The shift comes as the US, under the Donald Trump administration, has ramped up its scrutiny of H-1B visa applications since the start of the year. According to recent data from the United States Citizenship and Immigration Services (USCIS), H-1B visa approvals this year dropped by 27 per cent Year-on-Year—marking the lowest since the pandemic-hit FY21. Each year, the US allots 85,000 H-1B visas to foreign professionals, with Indians accounting for nearly 70 per cent of the total. However, a wave of layoffs across major tech firms including Microsoft, Google, and Intel has deepened uncertainty among Indian workers in the US. 'Our clients have become more fearful and anxious, particularly regarding international travel and visa 'stamping' at consular posts abroad,' said Joel Yanovich, attorney at the Murthy Law Firm. 'I don't think a day goes by where I don't have a client or two asking me whether it's safe to travel.' Rise in L-1 and O-1 applications In response to growing apprehensions around the H-1B process, more applicants are turning to L-1 and O-1 visas—both of which do not have annual numerical limits. The L-1 visa facilitates intracompany transfers, while the O-1 visa is designed for individuals with extraordinary ability in fields such as science, arts, or business. 'Part of this [spike in demand] is seasonal, based on people not being selected for the H-1B lottery,' Yanovich said. 'But part of it appears to stem from employers and individuals hoping to avoid the heightened scrutiny they fear the H-1B program may face.' Canada as a staging ground Adding to the shift, companies are also considering temporary assignments outside the US as a strategic move to qualify employees for other visa categories. 'What we are also seeing is that some companies are transferring their employees to countries like Canada or elsewhere outside the US for a short time so that they will qualify for the L-1 visa,' Sukanya Raman, country head – India & GCC practice team at Davies & Associates LLC, was quoted as saying by The Economic Times. This tactic typically applies to professionals in managerial roles who may later transition to the EB-1C visa, which can lead to a green card, she said. There's also rising interest in the EB-2 NIW (National Interest Waiver)—a green card category for individuals with advanced degrees whose work is deemed to benefit the US on a national level. EB-5 investor visa sees surge The EB-5 immigrant investor visa has also seen a notable 50 per cent increase in demand since January 2025, according to Raman. 'These are in current status for Indian nationals, which means that visas are available and applicants can receive their authorisation and travel documents in just 3-6 months,' she noted. 'This allows them to stay in the US legally.'
NDTV
2 hours ago
- NDTV
How Trump's 'Big, Beautiful Bill' Impacts Funds Transferred To India
New Delhi: In US President Donald Trump's "One Big Beautiful Bill," recently pushed through the House of Representatives, lies a provision that could change global remittance flows, and India, the world's leading recipient of remittances, could be impacted the most. On May 22, the US House narrowly passed the bill by a 215-214 margin, moving forward legislation that includes a proposed 3.5 per cent tax on all outbound remittance transfers. Originally pitched at 5 per cent, the rate was later revised under pressure. The clause targets funds transferred from the United States to recipients abroad by foreign workers, including legal residents such as green card holders and temporary visa workers like H-1B employees. The proposed bill has been heavily criticised by billionaire Elon Musk, who has had a monumental fallout with the US President. "I think a bill can be big or it could be beautiful. But I don't know if it could be both," the Tesla and SpaceX chief said recently. How It Will Impact India According to the World Bank and Reserve Bank of India (RBI), India received approximately $129 billion in remittances in 2024 alone. The figure is almost as much as the annual budgets of Pakistan ($67 billion) and Bangladesh ($68 billion) combined. The largest portion of this sum originates from Indian workers in the United States. The proposed new tax could drain billions from the pool of funds that support millions of households in India. In the last 10 years, India's overall remittances grew by 57 per cent. In total, between 2014 and 2024, India has received nearly $1 trillion dollars ($982 billion) only in remittances. The tax could disproportionately affect states where remittance flows are critical to household consumption. Kerala, Maharashtra, Uttar Pradesh, and Bihar are among the top recipients. Migrant Labour Impact India's international migrant population rose from 6.6 million in 1990 to an estimated 18.5 million by 2024. While the Gulf continues to host a larger portion of these migrants, a significant share now resides in developed economies, particularly the United States, where Indian professionals dominate high-earning sectors like IT, healthcare, finance, and engineering. Recent figures show that nearly 78 per cent of Indian workers in the US are employed in high-income professions, contributing to a sharp increase in total remittances from the US, which accounted for almost 28 per cent of India's total in 2023-24, up from 23.4 per cent in 2020-21. "The proposed US tax on remittances sent abroad by non-citizens is raising alarm in India, which stands to lose billions in annual foreign currency inflows if the plan becomes law," the Global Trade Research Initiative (GTRI) said, as quoted by news agency PTI. Political Context Of The Bill The remittance tax is just one element of the sweeping legislation backed by President Trump, who has promised that the bill will fund his campaign pledges Some other provisions include: No federal tax on tips and overtime for individuals earning under $160,000 per year, a measure Trump heavily promoted during his 2024 campaign. Creation of Trump Savings Accounts with a $1,000 initial deposit for newborns and a $5,000 annual contribution cap. Repeal of excise taxes on gun silencers and indoor tanning services. SALT deduction cap raised from $10,000 to $40,000 for joint filers with income under $500,000 - though this provision faces opposition in the Senate; A rollback of green energy tax credits, including those for electric vehicles and residential solar panel installations. Deep cuts to student loan programs.
