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India's manufacturing sector growth eases slightly to 58.8 in April
May-02-2024

India's manufacturing sector growth eased slightly in the month of April but signaled the second-best improvement in the health of the sector for three-and-a-half years, supported by buoyant demand. Firms experienced a sharp upturn in new business intakes and scaled up production accordingly. According to the survey report, the seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) eased to 58.8 in April as against 59.1 in March.

The survey report further noted that stocks of purchases, one of the five sub-components of the headline figure, increased sharply in April. The rate of expansion was the third-strongest seen since data collection started in early-2005, behind only those recorded last month and May 2023. April's rise in raw material stocks was supported by a further increase in buying levels.

Indian manufacturers witnessed robust demand for their goods in April, from domestic and external clients. Total new orders rose sharply, with the pace of expansion being the second-strongest since the start of 2021. Growth was spurred by healthy demand trends and successful marketing campaigns. Indian goods producers forecast higher output in the year ahead, relative to present levels.

Besides, to fulfil current and expected improvements in demand, manufacturers hired additional staff at the start of the first fiscal quarter. The pace of job creation was moderate, but nevertheless the quickest since September 2023. Meanwhile, pressure on operating capacities remained mild as evidenced by a slight uptick in outstanding business volumes.


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