India’s manufacturing PMI increased to 54.7 in April from 53.9 in March, with growth in output, new orders, and employment, indicating resilience in the sector, as per HSBC Flash India PMI data. The growth in new business intakes and production among Indian manufacturers in April showed mild recoveries, although the rates of increase were the second-weakest since 2022. Export performance was strong, with the fastest upturn since September last year, while companies noted that the Middle East conflict contributed to inflationary pressures.
“Spillovers from the Middle East conflict are becoming more evident, particularly through inflation: input costs increased at the fastest pace since August 2022, and output prices rose at the quickest rate in six months,” stated Pranjul Bhandari, Chief India Economist at HSBC. Despite the rise in PMI from 53.9 in March to 54.7 in April, the HSBC India Manufacturing Purchasing Managers’ Index indicated the second-slowest improvement in operating conditions in nearly four years. Survey participants highlighted that advertising and demand resilience supported sales and production, although growth was hindered by competitive conditions, the Middle East conflict, and clients’ reluctance to approve pending quotes.
Indian manufacturers maintained optimism towards growth prospects, with positive sentiment slightly decreasing from March but remaining the second-highest since November 2024. Confidence was driven by expectations of successful marketing efforts and approval of pending projects. In April, goods producers reported shorter input lead times, attributing this improvement to better coordination with suppliers, marking a historically strong improvement, according to the PMI data.
