India’s manufacturing activity surged in March 2025, with the HSBC India Manufacturing Purchasing Managers’ Index (PMI) rising to 58.1, up from 56.3 in February, marking the highest reading in eight months. The uptick was driven by robust domestic demand and a sharp rise in new orders, even as export growth moderated slightly.
The PMI’s biggest contributor — the New Orders Index — hit 61.5, its highest since July 2024, underlining strong client demand, successful marketing efforts, and favorable business conditions. As a result, manufacturing output also rose at the fastest pace in eight months, with companies drawing down inventories of finished goods to meet demand, leading to the steepest drop in post-production stocks since January 2022.
To counter depleted inventories, input purchases increased at the quickest rate in seven months. Despite higher buying activity, supplier delivery times shortened for the 13th consecutive month, signaling efficient supply chains.
Although international orders remained strong, the rate of export growth slowed to a three-month low. Manufacturers cited gains from regions like Asia, Europe, and the Middle East.
Cost pressures re-emerged with rising prices for copper, electronic goods, LPG, and rubber, pushing input cost inflation to a three-month high. However, output prices rose at the slowest pace in a year, easing concerns of passing costs to consumers.
Around 30% of businesses surveyed expect output growth over the next 12 months, reflecting sustained optimism about India’s industrial expansion.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Please consult a professional before making any business or investment decision.
