India’s manufacturing sector continued its strong momentum in April, with the HSBC India Manufacturing PMI inching up to 58.2 from 58.1 in March — its highest level in 10 months, according to data released by S&P Global.
The uptick was driven by robust growth in new orders, particularly from international markets. Export demand grew at the second-fastest pace in over 14 years, indicating a shift in global supply chains toward India amid evolving trade dynamics, including US tariff announcements.
Key highlights:
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Manufacturing output rose at the quickest pace since June 2024, led by consumer goods.
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Firms reported the sharpest increase in output prices since October 2013, supported by strong demand, despite only a modest rise in input costs.
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Employment and purchasing activity both saw marked increases, reflecting business confidence.
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Outstanding business volumes rose at their fastest rate in 15 months, prompting more firms to hire additional staff on both permanent and temporary contracts.
Pranjul Bhandari, Chief India Economist at HSBC, said,
“The notable increase in new export orders may indicate a potential shift in production to India… Manufacturing output growth strengthened to a ten-month high on robust orders.”
Looking ahead, manufacturers remain optimistic about output prospects for the coming year, buoyed by expectations of continued demand, marketing efforts, and efficiency gains.
