India's Manufacturing Soars in April, Hits 10-Month High on Export Demand

In April 2025, according to data provided by S&P Global, the HSBC India Manufacturing Purchasing Managers' Index (PMI) improved slightly to 58.2 from 58.1 in March, becoming the highest for India's manufacturing sector in the past 10 months. The seasonally adjusted PMI indicates the greatest improvement in manufacturing conditions since June 2024, though the minor improvement is due to faster employment growth, production, and purchasing activity.

This is a recovery against the 14-month low of 56.3 that had been reached in February when new orders and output had held up.

The marked rise in new orders, particularly through foreign markets, was a major factor in that development. Consumers across Africa, Asia, Europe, West Asia, and in America significantly increased orders for Indian commodities, resulting in a rise in overseas demand, which was the second highest in more than 14 years. Towards this end, stronger consumer goods had the leading role as production increased at its fastest rate since June 2024.

Commenting on the data, HSBC Chief India Economist Pranjul Bhandari said, “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. Manufacturing output growth strengthened to a ten-month high on robust orders. Input prices increased slightly faster, but the impact on margins could be more than offset by the much faster rise in output prices, of which the index jumped to the highest level since October 2013.”