India’s manufacturing hits 10-month high in April

New Delhi

India’s manufacturing activity surged to a 10-month high in April, reaching a Purchasing Manager's Index (PMI) score of 58.2, up from 58.1 in March, according to a new HSBC India survey released Friday. A score above 50 indicates expansion, while below 50 reflects contraction.

The strong performance was led by rising domestic and export demand. New export orders grew at their fastest rate in over 14 years—excluding January—indicating a potential production shift to India amid changes in global trade policies.

HSBC India's Chief Economist Pranjul Bhandari linked the export rise to businesses adjusting after recent U.S. tariff announcements. Consumer goods firms led the growth, with sharp increases in new orders driving output.

Manufacturing output growth hit its highest since June 2024. Though input costs rose slightly faster, companies offset the pressure by raising prices, pushing output inflation to its highest level since October 2013.

Hiring also picked up pace. Nine percent of companies surveyed added workers in April, offering both permanent and temporary contracts to meet rising production needs.

Despite rising costs, businesses showed strong optimism for the future. The report noted that companies are confident about growth continuing throughout the year.

The increase in both domestic and foreign demand suggests that India’s manufacturing sector may become a more significant global player. Companies remain upbeat, signaling a positive outlook for the economy’s industrial base.

The report concludes that India's manufacturing growth is being driven by robust market conditions, improved confidence, and strategic shifts in global trade flows.