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India’s manufacturing activity climbed to a 10-month high in April, with the Purchasing Manager’s Index (PMI) rising to 58.2 from 58.1 in March, according to an HSBC India survey released on Friday.
A PMI reading above 50 signals expansion, while a score below that marks contraction.
Exports & Domestic Demand Boost Growth
Survey respondents credited the growth to stronger domestic and international demand. Apart from January, new export orders in April grew at the fastest pace in over 14 years.
The survey marked this as a strong start to the 2025–26 fiscal year.
HSBC India’s Chief Economist Pranjul Bhandari noted that the rise in export orders may reflect a shift in global production to India. She linked this trend to changing trade policies and tariffs imposed by the United States.
Consumer goods firms led the growth surge, reporting the sharpest rise in new business across all sectors.
Manufacturing output growth accelerated as robust orders came in. Input costs rose slightly faster in April, but output prices jumped at their highest pace since October 2013.
This suggests companies passed on the cost burden to customers, preserving their profit margins.
Hiring also picked up. About 9 per cent of firms surveyed said they added staff, offering both permanent and temporary roles to meet output needs.
Input inflation hit a four-month high, while output inflation soared to an 11-and-a-half-year peak.
Business confidence improved as well. “Strong optimism regarding output prospects over the coming year was evident in the April data, driven by expectations of demand strength,” the report said.
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