According to The HSBC Purchasing manager’s Index (PMI) for manufacturing sector slipped to 51.3 in April from 52.1 in March. PMI is a measure of factory production and it’s based on the data compiled from monthly replies to questionnaires sent to purchasing executives in around 500 manufacturing companies. Indian manufacturing growth slowed down in April despite factories cutting prices for the first time in two years.

The slow growth of manufacturing industry coupled with falling inflation might compel RBI to cut interest rates soon. Pollyanna De Lima, economist at markit said that the data supports a rate cut.

However the silver lining to the slight decrease in the index is that the PMI was recorded above the threshold of 50 for the 18th consecutive month. An index above 50 shows expansion, while an index below 50 shows decline.