India’s manufacturing sector hit a 10-month high in April 2025, with the seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) rising from 58.1 in March to 58.2 in April.

This follows a dip to a 14-month low of 56.3 in February, when output, new orders, and input purchasing had slowed.

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According to the survey, the total sales were supported by a sharp rise in international orders.

New business from abroad grew to the greatest degree in over 14 years at the start of the 2025-26 fiscal year, and this demand was led by Africa, Asia, Europe, the Middle East, and the Americas, the survey participants said.

Further, about 9 per cent of surveyed manufacturers hired more workers, both permanent and temporary, to meet rising demand. Companies increased their buying activity and built up inventories to keep up with future demand.

The April data showed strong optimism about future output, driven by expectations of higher demand. Companies were also more confident due to better marketing, improved efficiency, and more new customer enquiries.

Pranjul Bhandari, Chief India Economist at HSBC, said, “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.”

“Manufacturing output growth strengthened to a ten-month high on robust orders. 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 added.