India's manufacturing PMI hits 10-month high in April on export surge; IIP, RBI moves reflect mixed growth signals: Report

However, the HSBC India Manufacturing Purchasing Managers’ Index (PMI) reflected a marginal growth from 58.1 to 58.2 in March, the report said.

Though the month-on-month rise was modest, the seasonally adjusted index reflected the sharpest improvement in sectoral health since June 2024, driven by stronger growth in output, employment, and purchase inventories.

This marks a continued recovery after the PMI dipped to a 14-month low of 56.3 in February, when production, new orders, and input purchases had declined.

Surge in overseas orders fuels factory momentum

A sharp increase in new orders—especially from international markets—helped lift the PMI.

The HSBC survey noted that overseas demand rose at the second-fastest pace in over 14 years, with buyers from Africa, Asia, Europe, West Asia, and the Americas placing more orders for Indian goods.

As a result, factories boosted production at the quickest pace since June 2024, led by strong consumer goods output.

Firms step up hiring, stockpiling in anticipation of demand

Roughly 9 percent of manufacturers reported hiring more workers—both permanent and temporary—to meet higher demand.

They also stepped up purchasing activity and accumulated inventories to prepare for future growth.

The April data showed strong confidence in future output, with companies citing improved marketing strategies, better operational efficiency, and a rise in new customer queries as reasons for their optimism.

India’s services and composite PMI data for April will be released on May 6.

IIP shows mild rebound in March, but FY25 growth weakest in 4 years

The Index of Industrial Production (IIP) grew by 3 per cent in March, recovering from February’s six-month low of 2.72 per cent.

However, IIP growth for FY25 slowed to 4 per cent—the weakest in four years—compared to 5.9 per cent in FY24, pointing to a broader industrial deceleration.

The March uptick was supported by a 6.3 per cent rise in electricity output and a modest 3 per cent growth in manufacturing.

However, mining remained subdued, growing just 0.4 per cent. For context, IIP had increased by 5.4 per cent in March 2024 and had seen a sharp contraction of 8.4 per cent during pandemic-hit FY21.

RBI trims repo rate again to aid recovery

In a parallel effort to support growth, the Reserve Bank of India’s Monetary Policy Committee cut the repo rate by 25 basis points to 6 per cent in April and shifted its stance from “neutral” to “accommodative,” suggesting the likelihood of further easing.

This was the second rate cut in 2025, following a similar move in February from 6.5 per cent to 6.25 per cent.

The next MPC meeting is scheduled for June 4–6, 2025.