India’s Manufacturing Sector Records Strong Growth in March - News

Fuelled by accelerating demand and positive economic factors, India’s manufacturing industry experienced its strongest growth in 16 years. The final HSBC India Manufacturing Purchasing Managers’ Index compiled by S&P Global, soared to 59.1 in March, marking the highest level since February 2008, and PMI reading has been above 50 for a 33rd consecutive month.

This substantial growth was driven by the surge in production and new orders, with sub-indexes reaching levels unseen since October 2020. Ines Lam, Economist, HSBC, noted that the strong production growth was buoyed by robust domestic and external demand. 

Particularly notable was the accelerated pace of exports, which expanded at the fastest rate in nearly two years. The positive momentum extended to job creation, with employment generation reaching its strongest point since September 2023, indicating a growing labor market within the sector. 

Despite concerns about inflationary pressures, manufacturers demonstrated resilience by effectively managing rising input costs while maintaining competitive pricing strategies. Looking ahead, the outlook remains optimistic, with a focus on managing inflation while sustaining growth. The Reserve Bank of India’s prudent approach to interest rates highlights the dedication to economic stability alongside growth initiatives.