April Sees Indian Manufacturing at Highest Level Since June 2024, Bolstered by Exports and Recruitment
Sustained global demand, strong consumer goods output, and accelerated job creation drive India’s factory activity to its highest level since June 2024.
Introduction
India’s manufacturing engine is gaining speed again. In April 2025, the country’s factory activity hit a 10-month high, buoyed by robust demand for exports, solid consumer goods production, and a renewed focus on employment. The manufacturing performance index by HSBC for India ticked up to 58.2 in April, compared to 58.1 in March, indicating persistent growth and optimism among firms.
This latest growth marks the most significant upswing since June 2024 and offers a strong indication that India’s industrial sector is positioned to remain a key pillar of economic growth in the coming quarters.
April PMI Signals Strong Sector Performance
April’s PMI stood at 58.2, comfortably exceeding the 50 threshold that differentiates economic growth from downturn. This performance reflects broad-based improvement across manufacturing, including rising output, increased new orders—especially from abroad—and growing employment.
According to HSBC’s monthly PMI survey, April witnessed one of the strongest increases in international sales in over a decade. International demand surged, marking the second most rapid rise in export bookings since March 2011, with notable interest from buyers in Asia, Europe, and the U.S.
This uptick in global orders has injected fresh momentum into India’s production lines, particularly in the consumer goods segment, which saw the sharpest acceleration among all categories.
Exports Fuel Manufacturing Growth
One of the primary drivers of this manufacturing boost has been the resurgence in export demand. Global economic stability and India’s competitive edge in cost-effective production have led to a surge in overseas orders. Many Indian manufacturers reported increased sales to foreign clients, noting that favorable pricing, quality standards, and quicker turnaround times enhanced their attractiveness in international markets.
This robust export activity not only helped boost order books but also gave firms confidence to invest in production upgrades and expand their capacity to meet the rising demand.
Hiring and Capacity Expansion on the Rise
A notable aspect of April’s manufacturing report is the significant momentum in employment. Businesses expanded their workforce at the quickest rate in almost two years, reflecting confidence in continued demand growth. Both permanent and contractual positions saw increases, with manufacturers citing the need to expand workforces to handle higher order volumes and longer production cycles.
This trend reflects a broader improvement in India’s labor market and suggests that the benefits of industrial expansion are beginning to ripple into the wider economy. Additionally, firms ramped up their input purchases and expanded their inventories to keep up with production needs.
Input Costs and Pricing Trends
While the sector experienced strong output growth, firms also faced some inflationary pressures. Input costs rose in April due to higher prices for raw materials such as metals and chemicals. However, most companies managed to pass these costs on to customers by raising selling prices at the fastest rate in over a year.
Despite these cost increases, business sentiment remained high, with many manufacturers expecting demand to stay strong throughout the year. Firms also reported better vendor performance and improved supply chain conditions, helping to smooth operations and avoid production bottlenecks.
Sectoral Performance: Consumer Goods Lead the Way
Among the various sub-sectors, the consumer goods industry stood out with the strongest growth. Stronger household consumption, festival-driven purchasing, and sustained export growth played key roles in lifting production output. Capital goods and intermediate goods also recorded steady improvements, reflecting balanced growth across industry verticals.
The sustained growth in consumer demand, both at home and abroad, highlights the sector’s resilience and its ability to capitalize on shifting market trends.
Conclusion: A Promising Outlook for Indian Manufacturing
April 2025 marked a turning point for India’s manufacturing sector, which surged ahead with its fastest growth rate in 10 months. Backed by strong global demand, rising consumer goods output, and encouraging employment trends, the sector is signaling durable economic health.
Looking ahead, manufacturers remain optimistic about business prospects over the next 12 months. As export demand continues and hiring gains traction, the sector is poised for steady expansion—further strengthening India’s post-pandemic economic rebound and reinforcing its role as a key global manufacturing hub.
The image added is for representation purposes only
