India’s manufacturing sector surged to a 38-month high in April 2025, according to the latest HSBC India Manufacturing Purchasing Managers’ Index (PMI) released this week. The index rose to 58.8 from March’s 56.6, marking the strongest performance since January 2021. This sharp uptick reflects strong demand conditions, increased factory orders, and robust business confidence — reinforcing India’s position as one of the world’s fastest-growing major economies.
Economists say the growth is driven by both domestic and international demand. New export orders saw a significant jump, particularly from markets in the US and Europe. Meanwhile, domestic consumption, especially in consumer durables and capital goods, also showed strong momentum. The report noted that job creation in the manufacturing sector improved modestly, although firms largely managed to boost output without heavy hiring.
Notably, input cost inflation remained moderate, helping manufacturers avoid major price hikes for consumers. Many firms reported improved supply chain conditions and better availability of raw materials compared to last year.
Industry leaders have welcomed the data as a sign of resilience amid global uncertainties. “This level of manufacturing activity is not just a rebound but a clear signal that India’s economic fundamentals are strengthening,” said Rajiv Kumar, former Vice-Chairman of NITI Aayog.
The positive outlook has also strengthened investor sentiment, with the BSE Sensex and Nifty 50 both closing higher following the release of the report. Experts believe the manufacturing boost could help India sustain its GDP growth target of over 7% in the current fiscal year.
However, challenges remain. Rising geopolitical tensions and global trade disruptions could still affect supply chains and export growth in the coming quarters. But for now, the sector appears to be on a solid growth path.