India's manufacturing sector experienced robust growth in April 2025, reaching its highest level in 10 months. The HSBC India Manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, rose to 58.2 in April from 58.1 in March. A PMI reading above 50 indicates expansion in the sector. The Economic Times+4The Times of India+4Reuters+4
Key Drivers of Growth
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Export Orders Surge: New export orders grew at the second-fastest rate in over 14 years, driven by increased demand from regions including Africa, Asia, Europe, the Middle East, and the Americas. Finimize+5The Times of India+5Entrepreneur+5
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Output Expansion: Manufacturing output expanded at the sharpest rate since June 2024, with consumer goods makers registering the fastest increase among the surveyed sectors. The Times of India+2Reuters+2The Economic Times+2
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Employment Growth: Hiring activity accelerated, with 9% of surveyed companies increasing staff, offering both permanent and temporary roles. The Times of India
Pricing and Cost Dynamics
Despite rising labor 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, ... . The Tribune+9The Times of India+9The Economic Times+9
Global Trade Dynamics
The notable increase in new export orders ... . This shift suggests that India is becoming a more attractive destination for manufacturing amid global trade changes. The Times of India+5Reuters+5Entrepreneur+5The Times of India+2Finimize+2Reuters+2
Inventory and Supply Chain Adjustments
To meet the rising demand, companies ramped up their purchasing activity, leading to an accumulation of input inventories at the fastest rate since August 2024. Conversely, finished goods inventories saw a sharp decline, falling at the quickest pace in nearly three-and-a-half years, as firms cleared out existing stock to meet demand. Entrepreneur+1The Times of India+1
Outlook
Business optimism remains strong, with over 30% ... firms expecting higher output in the next year. The sustained growth in the manufacturing sector positions India as a key player in the global manufacturing landscape. Reuters
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