India’s manufacturing sector saw its strongest performance in ten months in April, as output and international demand surged, according to the HSBC India Manufacturing Purchasing Managers’ Index (PMI). The seasonally adjusted PMI rose to 58.2 from 58.1 in March, indicating solid expansion in factory activity.
Pranjul Bhandari, Chief India Economist at HSBC, attributed the uptick to robust new orders and a potential shift in global production to India amid changing trade dynamics. “Export orders rose at their second-fastest pace in 14 years, pointing to growing global demand for Indian goods,” Bhandari noted.
Manufacturing output expanded at its quickest pace since June 2024, led by consumer goods. About 9% of surveyed firms reported new hires, reflecting rising capacity needs. Firms also increased input purchases and stockpiling, though post-production inventories fell sharply, highlighting swift demand fulfilment.
Despite a moderate rise in input costs—including labour, steel, and transport—companies were able to pass these costs on, with selling prices rising at the fastest rate since October 2013. Supplier delivery times improved slightly, while backlogs rose for the third straight month, reaching a 15-month high.
Looking ahead, manufacturers remained upbeat, citing expectations of continued demand growth, marketing efforts, and new business opportunities. The data suggests a strong start to FY 2025–26, reinforcing manufacturing as a key pillar of India’s economic growth.
(With ANI inputs)