A monthly survey said on Friday (May 2, 2025) that growth in India's manufacturing sector improved in April, with production growing at the fastest pace since June 2024, behind another strong expansion of a book order. |Photo source: Reuters
A monthly survey said on Friday (May 2, 2025) that growth in India's manufacturing sector improved in April, with production growing at the fastest pace since June 2024, behind another strong expansion of a book order.
The seasonally adjusted HSBC Manufacturing Purchasing Managers Index (PMI) rose from 58.1 in March to 58.2 in April, indicating that the industry's biggest improvement in health has been in ten months.
In PMI's statement, printing above 50 means expansion, while a score below 50 means shrinkage.
The key factor in promoting the latest advancements in output growth is the dramatic growth of new businesses. The expansion rate of manufacturing industry has been supported by better domestic and international demand.
According to the survey, the sharp increase in international orders supported total sales.
Survey participants said that at the beginning of the 2025-26 fiscal year, the demand was led by Africa, Asia, Europe, the Middle East and the Americas.
“The significant increase in new export orders in April may indicate a potential shift in U.S. tariff announcements as businesses adapt to the evolving trade landscape and U.S. tariff announcements,” said Pranjul Bhandari, chief India economist at HSBC.
This positive trend is accompanied by a significant increase in employment and purchasing activity.
“Manufacturers continue to increase their staffing levels in April to meet the growing output requirements. Just about 9% of the survey participants assumed additional workers, reportedly providing a combination of permanent and temporary contracts,” the survey said.
Procurement activities have emerged with new business growth, and the latest sharp expansion in investment-buying is also partly attributed to stock construction plans.
“Manufacturing output growth has grown to a ten-month high on strong orders. Input prices have grown slightly faster, but the impact on profit margins may be offset by the rise in output prices, which jumped to the highest level since October 2013.”
On the price side, strong demand for Indian goods has strengthened the company's pricing power, with the highest sales expenses since October 2013.
In April data, strong optimism about the output outlook for the coming year was driven by expectations of demand intensity. Marketing efforts, efficiency improvements and new customer inquiries also provide the basis for positive forecasting.
HSBC India Manufacturing PMI compiled by S&P Global, a questionnaire sent to the purchase manager from a panel of about 400 manufacturers.
publishing – May 2, 2025-7:00 pm ist
