India’s manufacturing growth hits 10-month high in April on export surge: Report

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NEW DELHI: India’s manufacturing sector accelerated to its strongest tempo in 10 months in April, fuelled by a surge in export orders and strong output growth, at the same time as companies raised promoting costs on the quickest charge in over 11 years, Reuters reported on Friday.
The HSBC India Manufacturing Purchasing Managers’ Index (PMI), compiled by S&P Global, rose to 58.2 in April from 58.1 in March. Though barely under the flash estimate of 58.4, the April determine marks the most effective efficiency since June 2024.
A PMI studying above 50 signifies growth.
Export orders rose at their second-fastest tempo in over 14 years, surpassed solely by January 2025, as companies more and more turned to India amid shifting world commerce patterns and contemporary US tariff measures. “The notable 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 US tariff announcements,” mentioned Pranjul Bhandari, chief India economist at HSBC, quoted by Reuters.
The sturdy export push helped elevate total new orders, which remained near March’s eight-month high.
According to PTI, this included important demand from areas like Africa, Asia, Europe, the Middle East, and the Americas. Consumer items producers led the growth, posting the quickest output rise amongst sectors surveyed.
Despite rising labour and materials prices, companies raised their promoting costs on the steepest charge since October 2013, passing on prices to clients. “Input prices increased slightly faster, but the impact on margins could be more than offset by the much-faster rise in output prices,” Bhandari was quoted by Reuters.
Hiring exercise additionally picked up tempo, with 9% of surveyed firms rising employees, providing each everlasting and non permanent roles. The report, famous that companies ramped up purchases to satisfy demand and constructed enter inventories—whereas post-production shares dropped sharply, reflecting environment friendly order fulfilment.
Strong demand additionally led to an increase in work backlogs for the third straight month, with the speed of accumulation hitting a 15-month high.
Despite elevated costs, enterprise confidence remained traditionally high. Over 30% of producers foresee increased output in the yr forward, supported by anticipated demand energy, advertising and marketing efforts, and new shopper acquisition.
The upbeat April PMI information indicators a sturdy begin to FY26 for the manufacturing sector, reinforcing its central function in India’s ongoing financial momentum.