India Manufacturing Growth Picks Up in April

The HSBC India Manufacturing PMI rose to 55.9 in April 2026 from 53.9 in March, signalling a stronger improvement in factory conditions, flash data showed. Output and new orders expanded at faster rates, supported by improved demand, capacity expansion, and technology investment. New export orders grew at their fastest pace in nine months, though external demand rose more moderately overall. Employment also increased at a 10-month high as firms expanded staffing in response to stronger order inflows. Input purchasing accelerated, while firms continued to build inventories, with finished goods stocks rising for the first time in six months at the fastest pace since 2015. Cost pressures remained elevated, driven by higher fuel, gas, oil, and raw material prices, although input cost inflation eased from March’s peak. Firms continued to raise output prices at a more measured pace, reflecting partial pass-through of higher costs amid competitive pressures.

The HSBC India Manufacturing PMI fell to 53.9 in March 2026 from 56.9 in February, slightly higher than preliminary estimates of 53.8. This marked the weakest improvement in business conditions in nearly four years, as factory output and new orders rose at the slowest pace since mid-2022, weighed down by cost pressures, intense competition, and heightened market uncertainty amid the Middle East conflict. Meanwhile, employment increased at the fastest rate in seven months as firms added staff, while input buying and inventories continued to expand, albeit at a slower pace. External sales also saw their strongest expansion since September 2025, supported by gains across multiple regions. On prices, input costs rose sharply to a 43-month high, but output price inflation remained modest, reflecting firms’ efforts to absorb higher expenses. Firms became more optimistic about production over the year, even as backlogs of work declined for the first time in nearly 18 months.

The HSBC India Manufacturing PMI fell to 53.8 in March 2026 from 56.9 in February, exceeding expectations for a slight easing to 56.8, preliminary estimates showed. This marks the weakest expansion in factory activity since September 2021, as output growth slowed amid softer domestic demand and uncertainty from the Middle East conflict. New orders rose only modestly, while international sales surged at a record pace. Employment increased moderately, supporting ongoing capacity expansion. Input purchases and inventories also rose, though at a slower pace than February, with delivery times improving. Input costs jumped at the fastest rate in 45 months, while output prices rose at the strongest pace in seven months, reflecting elevated inflationary pressures. Manufacturers remained cautiously optimistic about growth over the coming year, citing efficiency improvements, marketing efforts, and new client enquiries.