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India manufacturing growth picks up in April; inflationary pressures persist
May-04-2026

India’s manufacturing sector growth improved in the month of April 2026, but still marking the second-slowest improvement in operating conditions in nearly four years. Besides, spillovers from the Middle East conflict are becoming more evident, particularly through inflation as input costs increased at the fastest pace since August 2022, and output prices rose at the quickest rate in six months. According to the survey report, the seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) rose to 54.7 in April from 53.9 in March. 

The report further noted that new orders and output rose since March but trailed readings seen in at least three-and-a-half years. Advertising and demand resilience supported sales and production, but that growth was hampered by competitive conditions, the war in the Middle East and a reluctance among clients to approve pending quotes. Further, new export orders expanded sharply at the start of the first fiscal quarter, with the pace of growth reaching a seven-month high, amid better demand from clients in several countries, including Australia, France, Japan, Kenya, mainland China, Saudi Arabia, the UAE and the UK.

As per the report, despite only a marginal increase in outstanding business volumes, manufacturers recruited additional workers at the start of the first fiscal quarter. Moreover, the rate of job creation was marked and the strongest in ten months. Hiring growth reflected expansion plans. Meanwhile, Indian manufacturers remained optimistic towards growth prospects. The overall level of positive sentiment slipped since March, though was at its second-highest mark since November 2024. Confidence was pinned on hopes that marketing efforts will bear fruit and that pending projects will be approved.

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