India’s manufacturing PMI rose to 54.7 in April, up from 53.9 in March, as output, new orders (including exports) and employment all grew moderately, pointing to continued resilience in India’s manufacturing sector, the HSBC Flash India PMI data showed on Monday.
April data showed mild recoveries in growth of new business intakes and production among Indian manufacturers, but rates of increase were still the second-weakest since 2022.
Exports was a bright area, with firms welcoming the fastest upturn since last September. Companies continued to indicate that the war in the Middle East exerted upward pressure on inflation. Input costs and output charges rose at the quickest rates in 44 and six months, respectively, showed the data.
“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,” said Pranjul Bhandari, Chief India Economist at HSBC.
Despite rising from 53.9 in March to 54.7 in April, the seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) – a gauge of overall conditions derived from measures of new orders, output, employment, supplier delivery times and stocks of purchases – signalled the second-slowest improvement in overall operating conditions in close to four years.
Survey participants indicated that advertising and demand resilience supported sales and production, but that growth was hampered by competitive conditions, the war in the Middle East and a reluctance among clients to approve pending quotes, the PMI data said.
Indian manufacturers remained optimistic towards growth prospects. The overall level of positive sentiment slipped since March, though was at its second-highest mark since November 2024.
Confidence was pinned on hopes that marketing efforts will bear fruit and that pending projects will be approved.
“Finally, goods producers signalled shorter input lead times in April, which they associated with better coordination with new and existing suppliers. The extent of the latest improvement was historically strong,” according to the PMI data.
(IANS)
