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India's Manufacturing PMI Rises to 54.7 in April, Showing Resilience

India's manufacturing PMI rose to 54.7 in April, up from 53.9 in March, indicating continued resilience. Output, new orders, and employment grew moderately, though rates were the second-weakest since 2022. Exports saw the fastest upturn since last September, but the Middle East conflict exerted upward pressure on inflation. Input costs and output charges rose at their quickest rates in 44 and six months, respectively.

Key Points: India Manufacturing PMI Rises to 54.7 in April

  • Manufacturing PMI rises to 54.7 in April from 53.9
  • Output, new orders, and employment grow moderately
  • Exports see fastest upturn since September 2023
  • Input costs and output prices rise at quickest rates in months
2 min read

India's manufacturing PMI rises to 54.7 in April amid continued resilience

India's manufacturing PMI rose to 54.7 in April from 53.9, driven by output, new orders, and employment growth, despite inflation pressures from the Middle East conflict.

"Spillovers from the Middle East conflict are becoming more evident, particularly through inflation - Pranjul Bhandari"

New Delhi, May 4

India's manufacturing PMI rose to 54.7 in April, up from 53.9 in March, as output, new orders and employment all grew moderately, pointing to continued resilience in India's manufacturing sector, the HSBC Flash India PMI data showed on Monday.

April data showed mild recoveries in growth of new business intakes and production among Indian manufacturers, but rates of increase were still the second-weakest since 2022.

Exports was a bright area, with firms welcoming the fastest upturn since last September. Companies continued to indicate that the war in the Middle East exerted upward pressure on inflation. Input costs and output charges rose at the quickest rates in 44 and six months, respectively, showed the data.

"Spillovers from the Middle East conflict are becoming more evident, particularly through inflation: input costs increased at the fastest pace since August 2022, and output prices rose at the quickest rate in six months," said Pranjul Bhandari, Chief India Economist at HSBC.

Despite rising from 53.9 in March to 54.7 in April, the seasonally adjusted HSBC India Manufacturing Purchasing Managers' Index (PMI) - a gauge of overall conditions derived from measures of new orders, output, employment, supplier delivery times and stocks of purchases - signalled the second-slowest improvement in overall operating conditions in close to four years.

Survey participants indicated that advertising and demand resilience supported sales and production, but that growth was hampered by competitive conditions, the war in the Middle East and a reluctance among clients to approve pending quotes, the PMI data said.

Indian manufacturers remained optimistic towards growth prospects. The overall level of positive sentiment slipped since March, though was at its second-highest mark since November 2024.

Confidence was pinned on hopes that marketing efforts will bear fruit and that pending projects will be approved.

"Finally, goods producers signalled shorter input lead times in April, which they associated with better coordination with new and existing suppliers. The extent of the latest improvement was historically strong," according to the PMI data.

- IANS

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Reader Comments

J
James A
As someone working in supply chain logistics, the part about shorter input lead times and better coordination with suppliers is promising! But those inflation numbers are a red flag. Input costs rising fastest since Aug 2022 means manufacturers will pass it to consumers soon. 🚩
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Priya S
Finally, some positive economic news! 🎉 But I hope the employment growth mentioned actually translates into real jobs for our youth. Too often these surveys show 'growth' but ground reality is different. The war in Middle East is a big concern though - we are too dependent on that region.
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Rohit P
Export growth is the real story here! Fastest upturn since September last year. Means 'Made in India' is getting global traction. But the war in Middle East is a double-edged sword - while it's hurting input costs, it's also making companies look for alternative suppliers, which could benefit India long term.
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Michael C
The survey mentions 'reluctance among clients to approve pending quotes' - this is exactly what I'm seeing in my industry. Businesses are cautious because of geopolitical uncertainty. The PMI number is decent, but beneath the surface there's a lot of anxiety. Not a time for celebration yet.
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Siddharth J
As a manufacturer myself, I can confirm input costs are hurting. Raw material prices have shot up and we can't immediately pass it to customers. The PMI optimism is good but I wish the article gave more sector-wise breakdown. Is it auto, textiles, pharma driving this growth? Need more granular data!
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