NEW DELHI: Growth momentum in the country’s manufacturing sector improved in April, with output increasing at the fastest pace since June 2024. This was driven by the fastest upturn in exports in 14 years, possibly triggered by production shift to India against the backdrop of global trade tensions.
Despite rising marginally from 58.1 in March to 58.2 in April, the HSBC India Manufacturing Purchasing Managers’ Index (PMI) showed the strongest improvement in the health of the sector in ten months. The 50-point mark separates expansion from contraction in the survey, which is compiled from responses to questionnaires sent to 400 manufacturing firms.
Sub-sector data showed robust expansions, with the fastest increase registered at consumer goods makers. A key factor contributing to the latest improvement in output growth was a sharp rise in new business. Respondents attributed growth to better domestic and international demand. With the sole exception of Jan, new business from overseas grew to the greatest extent in over 14 years at the start of the 2025-26 fiscal year.Participants cited Africa, Asia, Europe, the Middle East, and the Americas as the key areas for robust demand.
“The notable increase in new export orders in April may indicate a potential shift in production to India, as businesses adapt to the evolving trade landscape and US tariff announcements,” said Pranjul Bhandari, chief India economist at HSBC.