A factory in India. Image for representation.
Credit: iStock Photo
New Delhi: India’s manufacturing output growth jumped to 10-month high in April, led by strong international demand, as per an industry survey report released by S&P Global on Friday.
Purchasing Managers’ Index (PMI) for manufacturing rose to 58.2 in April from 58.1 recorded in March
The output growth was led by a sharp jump in international orders. New business from abroad grew to the highest levels in over 14 years at the start of the 2025-26 fiscal year, S&P Global said in its monthly survey report.
Strong growth in new orders was recorded from Africa, Asia, Europe, the Middle East and the Americas.
“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,” said Pranjul Bhandari, Chief India Economist at HSBC.
Robust demand for Indian goods boosted firms' pricing power, with selling charges hiked to the greatest degree since October 2013. This was despite a modest uptick in input costs.
“Input prices increased slightly faster, but the impact on margins could be more than offset by the much-faster rise in output prices, of which the index jumped to the highest level since October 2013,” Bhandari said.
Purchasing activity rose in tandem with new business growth, and the latest sharp expansion in input buying was also partly attributed to stock building initiatives. Input holdings increased to the greatest extent since August 2024. Conversely, post-production inventories fell at the quickest pace in nearly three-and-a-half years.
The positive trend in new businesses was accompanied by a notable rise in employment and purchasing activities.
Manufacturing companies enhanced their staffing levels in April to meet growing output requirements. Around 9 per cent of survey participants took on extra workers, with a combination of permanent and temporary contracts reportedly being offered.
There was a build-up in inflationary pressure in manufactured goods during the month under review. Input prices rose at the fastest pace in four months during April, with firms mentioning higher building maintenance, labour, leather, paper, rubber, steel and transportation costs.
The overall rate of inflation was the highest seen in 11-and-half years. Anecdotal evidence indicated that companies continued to transfer cost increases to clients, S&P Global noted in the report.
The report is based on a survey conducted among around 400 manufacturers in the country.