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NEW DELHI: India’s manufacturing sector accelerated to its strongest pace in 10 months in April, fuelled by a surge in export orders and robust output growth, even as firms raised selling prices at the fastest rate in over 11 years, Reuters reported on Friday.
The HSBC India Manufacturing Purchasing Managers’ Index (PMI), compiled by S&P Global, rose to 58.2 in April from 58.1 in March. Though slightly below the flash estimate of 58.4, the April figure marks the best performance since June 2024.
A PMI reading above 50 indicates expansion.
Export orders rose at their second-fastest pace in over 14 years, surpassed only by January 2025, as businesses increasingly turned to India amid shifting global trade patterns and fresh US tariff measures. “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,” said Pranjul Bhandari, chief India economist at HSBC, quoted by Reuters.
The strong export push helped lift overall new orders, which remained close to March’s eight-month high.
According to PTI, this included significant demand from regions like Africa, Asia, Europe, the Middle East, and the Americas. Consumer goods manufacturers led the growth, posting the fastest output rise among sectors surveyed.
Despite rising labour and material costs, firms raised their selling prices at the steepest rate since October 2013, passing on costs to customers. “Input prices increased slightly faster, but the impact on margins could be more than offset by the much-faster rise in output prices,” Bhandari was quoted by Reuters.
Hiring activity also picked up pace, with 9% of surveyed companies increasing staff, offering both permanent and temporary roles. The report, noted that firms ramped up purchases to meet demand and built input inventories—while post-production stocks dropped sharply, reflecting efficient order fulfilment.
Strong demand also led to a rise in work backlogs for the third straight month, with the rate of accumulation hitting a 15-month high.
Despite elevated prices, business confidence remained historically high. Over 30% of manufacturers foresee higher output in the year ahead, supported by anticipated demand strength, marketing efforts, and new client acquisition.
The upbeat April PMI data signals a robust start to FY26 for the manufacturing sector, reinforcing its central role in India’s ongoing economic momentum.
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