April Purchasing Power Index Captures Indian Manufacturing Sector Struggling For Growth

ENA Sectors 2025-05-02 15:15:47 New Delhi, May 2 (KNN) India's manufacturing sector displayed enhanced performance in April, with the Purchasing Managers' Index (PMI) climbing to 58.2, slightly above March's 58.1, amid a surge in new export orders following the United States' recent tariff decisions. According to S&P Global, the headline figure was propelled by accelerated increases in stocks of purchases, employment, and production. The index is compiled based on responses from purchasing managers representing approximately 400 manufacturers, with readings above 50 indicating expansion and below 50 signalling contraction. Manufacturing, which accounts for 17 percent of India's Gross Domestic Product (GDP) and serves as the country's largest job multiplier, showed improved performance that signals positive growth expectations for both industry and the broader economy. Pranjul Bhandari, Chief India Economist, HSBC, noted that the significant 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. She further highlighted that manufacturing output growth strengthened to a 10-month high driven by robust orders. This development comes as the U.S. has imposed higher tariffs on Chinese imports while pausing reciprocal tariffs for India, resulting in fresh orders being placed to expedite export consignments. Strong demand for Indian goods enhanced firms' pricing power, with selling charges increased to the greatest extent since October 2013. Despite a modest uptick in input costs, Bhandari suggested that the impact on margins could be more than offset by the much faster rise in output prices, which reached their highest level in over a decade. Regarding employment, manufacturers continued to expand their workforce in April to meet growing output requirements. Nine percent of survey participants reported hiring additional workers, with both permanent and temporary contracts being offered. The rate of job creation was notable by historical standards. Survey respondents expressed strong optimism about future prospects, with positive forecasts driven by expectations of continued demand strength, marketing efforts, efficiency gains, and new client inquiries. (KNN Bureau) 41949 https://knnindia.co.in/news/newsdetails/sectors/april-purchasing-power-index-captures-indian-manufacturing-sector-struggling-for-growth 2025-05-02 15:15:47 knnindia.co.in April Purchasing Power Index Captures Indian Manufacturing Sector Struggling For Growth