New Delhi’s economic pulse beat stronger in April as the manufacturing PMI rose to 54.7, up from March’s 53.9, according to HSBC’s latest flash data. The index, a key barometer of sector health, reflects gains in new orders, output, and jobs—painting a picture of sustained vigor.
Export orders emerged as a standout performer, expanding at the fastest clip since September. This export boom, coupled with domestic order strength, fueled higher production and workforce expansion. Businesses ramped up purchasing and stockpiling to meet demand, though supplier delivery times stretched amid global disruptions.
Inflation, however, cast a shadow. Middle East tensions drove input prices to their highest growth in almost two years, with output prices following suit at a six-month peak. Manufacturers cited rising energy and commodity costs as primary culprits, squeezing margins in a fiercely competitive environment.
‘Middle East tensions are sharpening inflationary pressures,’ observed Pranjul Bhandari, HSBC’s top India economist. The PMI’s seasonally adjusted reading pointed to the joint second-weakest operational improvement in four years, tempered by customer hesitancy and rival pressures.
Despite headwinds, optimism prevails. Future outlook sentiment, while dipping marginally from March, hit its second-best mark post-November 2023. Industry leaders anticipate continued demand, supported by government incentives and supply chain stabilization.
This data reinforces India’s manufacturing renaissance, pivotal for achieving the ‘Make in India’ vision. As the sector employs millions and drives exports, its trajectory could accelerate national growth, even as global uncertainties loom large.
