Indian Economy News

India's manufacturing activity in April was the second strongest in 3.5 years

In April, India's manufacturing sector displayed robust growth, with the HSBC India Manufacturing Purchasing Managers’ Index (PMI) reaching 58.8, the second-strongest expansion since 2021. Despite a slight decrease from March's high, demand remained strong from both domestic and international markets, driving a surge in new orders. However, rising costs led to the strongest inflationary pressure since January, prompting firms to pass on increased costs to consumers.

The survey of 400 manufacturers revealed a sharp increase in purchase stocks, indicating optimism for future demand. While new export orders grew, the domestic market primarily fuelled expansion. This and improved vendor performance facilitated heightened employment opportunities and a surge in raw material stocks. Indian manufacturers anticipate higher output and focus on advertising and brand recognition for continued growth.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.