India's April Manufacturing PMI Remains Resilient at 58.2, Indicates Strong Factory Activity

India's manufacturing sector maintained its firm performance during April, as the HSBC/S&P Global Manufacturing Purchasing Managers' Index (PMI) final reading for the month registered at 58.2, down from the flash estimate of 58.4 but still one of the highest in the last year. The most recent figures confirm the sector's stability and continuing expansion, as the PMI still registered above the 50-level that differentiates growth from contraction.

 

The strong reading was underpinned by a jump in new export orders, which posted their steepest rise in more than a decade and a half. Home demand also remained firm, encouraging manufacturers to accelerate input buying and restock at the quickest rate in eight months. In spite of the surge in activity, inventories held after production dropped at the fastest rate in close to three-and-a-half years, as companies shipped orders straight from current inventories.

 

But the industry was under increasing cost pressures, with input price inflation coming in at its steepest rate in over twelve years. This notwithstanding, business confidence in manufacturers was better, underlining optimism about prolonged demand and prospects for future growth.

 

The robust PMI print points to India's manufacturing industry as a major driver of economic momentum going into the second quarter of 2025.

 

Source: S&P Global