India’s Manufacturing PMI Improves To 54.7 In April But Still Second-Slowest In Almost Four Years

Manufacturing activity in the country improved in April compared to the previous month on the back of growth in new orders and output.

Still, the month marked the slowest growth in the sector in the last four years.

India’s manufacturing purchasing managers’ index (PMI) rose to 54.7 in April compared to 53.9 in March.

A figure above 50 indicates expansion in the sector, and a figure below 50 shows contraction.

While higher than the previous month, the manufacturing PMI in April is the second-slowest in almost four years.

The mild recovery in manufacturing activity came on the back of growth in new business intakes and production among Indian manufacturers.

According to S&P Global, the firm which releases the index, participants indicated that advertising and demand resilience supported sales and production.

But the growth was hampered by competitive conditions, the war in the Middle East, and a reluctance among clients to approve pending quotes.

“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.

However, output, new orders (including exports), and employment grew moderately, which pointed to the continued resilience in India’s manufacturing sector, she said.

New export orders expanded sharply at the start of the first fiscal quarter, with the pace of growth reaching a seven-month high.

The survey said that companies reported improved demand from clients in several countries, including Australia, France, Japan, Kenya, mainland China, Saudi Arabia, the UAE, and the UK.

Indian manufacturers are optimistic towards growth prospects, the survey noted.

The overall level of positive sentiment slipped since March, though it was at its second-highest mark since November 2024.