India Manufacturing PMI Rises To 54.7 In April, Growth Remains Modest: HSBC Survey

New Delhi, May 4 (KNN) India’s manufacturing activity recorded a modest improvement in April, supported by stronger output, new orders and export demand, though overall growth remained among the weakest seen since 2022, according to the latest HSBC India Manufacturing Purchasing Managers’ Index (PMI) survey by S&P Global.

Output and New Orders Support Modest Improvement 

The seasonally adjusted HSBC India Manufacturing PMI rose to 54.7 in April from 53.9 in March. While the reading remained above the 50-mark that separates expansion from contraction, it indicated the second-slowest improvement in operating conditions in nearly four years.

Growth in new business orders and production improved from March levels but remained subdued compared to trends seen over the past three-and-a-half years. 

Survey participants cited advertising efforts and resilient demand as factors supporting sales and output, while competition, the ongoing conflict in West Asia, and delays in customer approvals weighed on growth.

Export Demand Strengthens, Costs Rise 

Export demand emerged as a key positive, with new export orders rising at the fastest pace in seven months. Manufacturers reported stronger demand from markets including Australia, France, Japan, Kenya, China, Saudi Arabia, the UAE, and the UK.

Input cost inflation accelerated sharply in April, reaching its highest level since August 2022. Companies reported higher prices for aluminium, chemicals, electrical components, fuel, leather, petroleum products, and rubber, with many linking the increase to the conflict in West Asia.

Manufacturers also raised selling prices at the fastest pace in six months to offset rising costs.

Hiring Improves Despite Slower Growth 

Purchases of raw materials and semi-finished goods continued to grow, although at one of the slowest rates in nearly two-and-a-half years. Input inventories also rose at the slowest pace in almost five years as some firms kept stock levels lean amid softer sales.

Employment conditions improved during the month, with manufacturers increasing hiring at the fastest pace in 10 months, driven by expansion plans.

Despite some challenges, manufacturers remained optimistic about future growth prospects, supported by expectations of stronger marketing outcomes and approvals for pending projects.

(KNN Bureau)