India's manufacturing sector growth accelerated in April to its strongest pace in 10 months, powered by robust export demand and increased output despite companies raising selling prices at the fastest rate in over 11 years, a survey showed on Friday.
The HSBC India Manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, inched up to 58.2 in April from 58.1 in March, a tad lower than a preliminary estimate of 58.4.
PMI readings above 50.0 indicate growth in activity, while those below that level point to a contraction.
"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 U.S. tariff announcements," said Pranjul Bhandari, chief India economist at HSBC.
Manufacturing output expanded at the sharpest rate since June 2024, with consumer goods makers registering the fastest increase among the surveyed sectors.
New orders remained buoyant, with growth holding close to March's eight-month high.
Export orders grew at the second-fastest pace in over 14 years, behind only January's surge. Survey respondents reported increased sales to clients across the world.
The hiring pace also accelerated from March, with both permanent and temporary contracts being offered.
Meanwhile, healthy demand allowed manufacturers to hike their selling prices at the steepest pace since October 2013, passing on rising costs to customers. This aggressive pricing strategy occurred even as input cost inflation remained moderate.
"Input prices increased slightly faster, but the impact on margins could be more than offset by the much-faster rise in output prices," Bhandari added.
Business confidence remained historically high, with over 30% of manufacturers forecasting higher output in the year ahead.
The HSBC India Manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, inched up to 58.2 in April from 58.1 in March, a tad lower than a preliminary estimate of 58.4.
PMI readings above 50.0 indicate growth in activity, while those below that level point to a contraction.
"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 U.S. tariff announcements," said Pranjul Bhandari, chief India economist at HSBC.
Manufacturing output expanded at the sharpest rate since June 2024, with consumer goods makers registering the fastest increase among the surveyed sectors.
New orders remained buoyant, with growth holding close to March's eight-month high.
Export orders grew at the second-fastest pace in over 14 years, behind only January's surge. Survey respondents reported increased sales to clients across the world.
The hiring pace also accelerated from March, with both permanent and temporary contracts being offered.
Meanwhile, healthy demand allowed manufacturers to hike their selling prices at the steepest pace since October 2013, passing on rising costs to customers. This aggressive pricing strategy occurred even as input cost inflation remained moderate.
"Input prices increased slightly faster, but the impact on margins could be more than offset by the much-faster rise in output prices," Bhandari added.
Business confidence remained historically high, with over 30% of manufacturers forecasting higher output in the year ahead.
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