India’s Manufacturing Sector Hits 8-Month High in March - News

According to HSBC India Manufacturing Purchasing Managers’ Index (PMI), India’s manufacturing activity surged in March 2025, reaching its peak in eight months. The PMI increased from 56.3 in February to 58.1 in March. The PMI is based on responses from around 400 manufacturing firms surveyed by S&P Global.

Following a temporary dip in February, when the PMI reached a 14-month low, the PMI recorded in March marked a strong recovery. This impressive rebound was expected to be the result of a sharp increase in new orders, the highest since July 2024. Companies attributed this growth to increased customer interest, supportive demand conditions, and successful marketing strategies. 

Production volumes were also identified to have increased significantly, with the rate of expansion exceeding previous averages. While export orders remained strong, the pace of growth eased slightly, with gains reported across Asia, Europe, and the Middle East. 

Pranjul Bhandari, Chief India Economist, HSBC, stated that despite a slight slowdown in overseas orders, overall demand stayed strong, pushing the new orders index to an eight-month peak of 61.5. To keep up with this heightened demand, companies relied on existing inventories, leading to the sharpest decline in finished goods stockpiles in more than three years. 

Looking ahead, firms remain hopeful about future growth. Bhandari noted that nearly 30 percent of businesses foresee increased production over the coming year, while fewer than 2 percent expect a decline.