India’s Manufacturing Activity Rises At Fastest Pace In 10 Months

India’s manufacturing sector surged to its strongest pace in 10 months in April 2025, buoyed by robust domestic and international demand, according to the latest HSBC India Manufacturing Purchasing Managers’ Index (PMI) compiled by S&P Global, Business Standard reported.

The PMI climbed marginally to 58.2 in April, up from 58.1 in March, marking the best performance since June 2024.

A figure above 50 signals expansion in the sector.

This marks the first PMI reading since United States President Donald Trump introduced a 10 per cent baseline tariff on all countries, along with a steep 145 per cent tariff specifically targeting China.

A key driver behind this growth has been a surge in export orders, which rose at their second-fastest pace in fourteen years.

"The PMIs of domestic-oriented economies like India and the Philippines, however, are holding up, with the latter experiencing a boost in activity due to upcoming elections. This suggests domestic demand will be pivotal in serving as a growth cushion against external shocks, which means policy stimulus, particularly on the fiscal side, is likely to gain traction," the survey note added.

The statement means that economies focused more on their internal markets, like India and the Philippines, are showing stable or strong performance in their PMI (Purchasing Managers’ Index) readings, despite global economic uncertainties.

Consumer goods companies recorded the highest growth among all sectors, driven largely by a strong surge in new business, which significantly boosted output.

Pranjul Bhandari, chief India economist at HSBC, noted that the rise in new export orders in April could signal a potential shift in global production toward India, as companies respond to changing trade dynamics and recent US tariff measures.

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