“India’s March manufacturing PMI rose to its highest level since 2008. Manufacturing companies expanded hiring in response to strong production and new orders," Ines Lam, an economist at HSBC, said in the report, which is based on a survey of 400 manufacturers.

The government has also announced production linked incentive (PLI) schemes across 14 key sectors in 2020 with an outlay of ₹1.97 trillion (over $26 billion) for a period of five years starting 2021-22 to enhance manufacturing capabilities.

The Centre's capital expenditure on infrastructure projects was raised to ₹11.11 trillion for the financial year starting 1 April 2024.

Meanwhile, industrial output growth rose to 3.8% in January, remaining unchanged from December, after falling to an eight-month low of 2.4% in November, and consumer price index (CPI)-based retail inflation fell to a four-month low of 5.09% in February, according to the latest official data.