Survey: Manufacturing sector activity at 10-month top, pace of new orders highest in 14 years

New Delhi| The country’s manufacturing sector activities improved to a 10-month high in April, 2025. Strong growth in new orders has played an important role in this. The HSBC India Manufacturing Purchasing Managers’ Index (PMI) rose to 58.2 last month, the highest since June, 2024. The manufacturing PMI in March had been 58.1. Pranjul Bhandari, chief economist at HSBC India, said the significant increase in new export orders could indicate a possible shift in production in India. Businesses are adapting to the emerging business landscape and US duty announcements. This positive trend has been accompanied by a large upturn in employment and procurement activity.

Companies expect production to increase
On the prices front, Bhandari said, strong demand for Indian goods boosted the pricing ability of companies. This led to the highest sales fee increase since October, 2013 despite a slight increase in raw material costs. Bhandari said, April figures show that manufacturing sector companies have a strong perception about the prospects of production growth in the coming year. This is driven by expectations of strengthening demand.

Speed of new orders highest in 14 years
According to the survey, a major factor contributing to the improvement on the production front was the rapid growth in new business. The expansion rate of the manufacturing sector was supported by improved domestic and international demand. New orders from abroad to domestic manufacturing companies grew the fastest in 14 years at the start of FY 2025-26. Domestic companies received the highest orders from Africa, Asia, Europe, West Asia and America.