India’s manufacturing sector maintained strong momentum in May, with the HSBC India Manufacturing Purchasing Managers’ Index (PMI) posting a reading of 57.6, according to data released Monday. While slightly below April’s 58.2, the index remained comfortably above the neutral 50 mark, indicating sustained growth.
The PMI data, compiled by S&P Global, signalled another robust month for the sector.
“India’s May manufacturing PMI signalled another month of robust growth in the sector,” said Pranjul Bhandari, Chief India Economist at HSBC. “The acceleration in employment growth to a new peak is certainly a positive development. Input cost inflation is picking up, but manufacturers seem to be mitigating pressure on margins by raising output prices.”
The expansion was driven by strong domestic and overseas demand, along with effective marketing efforts that pushed export orders to one of their highest levels in the past three years. Firms reported increasing interest from key global markets, including Asia, Europe, West Asia, and the United States.
A key highlight of May’s performance was record-high job creation since the PMI survey’s inception. Manufacturers focused on strengthening their permanent workforce, enabling smoother operations and better workload management.
This trend offers a boost to India’s young workforce and underlines continued investment in the sector’s long-term prospects.
Input costs rose moderately, with increases in items such as aluminium, cement, iron, leather, rubber, and sand, along with higher freight and labour charges. In response, manufacturers raised selling prices at a strong pace to safeguard profit margins.
Despite inflationary pressures, business confidence remained high, supported by rising customer enquiries, successful advertising campaigns, and a favourable domestic environment. Manufacturers expressed optimism about growth prospects in the coming year.
Adding to the positive outlook, India’s industrial production grew by 2.7 per cent in April 2025, according to the Ministry of Statistics. The manufacturing sector alone expanded by 3.4 per cent, with 16 out of 23 industry groups reporting positive output.
–IANS