India’s manufacturing sector growth hits 10-month high in April: PMI

 The growth momentum in the Indian manufacturing sector improved in April, with output increasing at the fastest pace since June 2024, on the back of another strong expansion in order books, a monthly survey said on Friday (May 2, 2025).
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The growth momentum in the Indian manufacturing sector improved in April, with output increasing at the fastest pace since June 2024, on the back of another strong expansion in order books, a monthly survey said on Friday (May 2, 2025).

The seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) rose from 58.1 in March to 58.2 in April, indicating the strongest improvement in the health of the sector for ten months.

In PMI parlance, a print above 50 means expansion, while a score below 50 denotes contraction.

A key factor contributing to the latest improvement in output growth was a sharp rise in new business. The manufacturing sector’s rate of expansion was supported by better domestic and international demand.

According to the survey, the total sales were supported by a sharp rise in international orders.

New business from abroad grew to the greatest degree in over 14 years at the start of the 2025-26 fiscal year and this demand was led by Africa, Asia, Europe, the Middle East, and the Americas, the survey participants said.

“The notable increase in new export orders in April may indicate a potential shift in production to India, as businesses adapt to the evolving trade landscape and US tariff announcements,” Pranjul Bhandari, Chief India Economist at HSBC, said.

This positive trend was accompanied by notable rises in employment and purchasing activity.

“Manufacturers continued to enhance their staffing levels in April to meet growing output requirements. Exactly 9% of survey participants took on extra workers, with a combination of permanent and temporary contracts reportedly being offered,” the survey said.

Purchasing activity rose in tandem with new business growth, and the latest sharp expansion in input buying was also partly attributed to stock-building initiatives.

“Manufacturing output growth strengthened to a ten-month high on robust orders. Input prices increased slightly faster, but the impact on margins could be more than offset by the much-faster rise in output prices, of which the index jumped to the highest level since October 2013,” Bhandari added.

On the prices front, robust demand for Indian goods boosted firms’ pricing power, with selling charges hiked to the greatest degree since October 2013. This was despite a modest uptick in input costs.

Strong optimism regarding output prospects over the coming year was evident in the April data, driven by expectations of demand strength. Marketing efforts, efficiency gains, and new client enquiries also underpinned positive forecasts.

The HSBC India Manufacturing PMI is compiled by S&P Global from responses to questionnaires sent to purchasing managers in a panel of around 400 manufacturers.