Manufacturing PMI: Industrial activities in the country have increased. The growth rate of manufacturing sector in April reached a 10 -month high due to a strong order book amidst global challenges. For the first time since June 2024, such a huge increase in production has been seen. HSBC India Manufacturing Purchasing Manager Index (PMI) increased to 58.2 in April. Which was 58.1 in March. The manufacturing sector has seen a strong growth every month since last month.
The PMI above 50 reflects expansion in industrial activity, while the PMI below 50 reflects contraction.
Production increased due to increase in new orders
The reason behind the increase in production in industrial activities is the increase in new orders. The increase in manufacturing sector supports both domestic and international demand. According to the survey, there has been a significant increase in international orders among many challenges globally. The increase in international orders as a percentage of total sales is at the highest level of 14 years. This demand has been observed mainly from Africa, Asia, Europe, Middle East and America.
Encouragement in export orders
HSBC chief economist Pranjul Bhandari said that a significant increase in new export orders in April suggests that India’s industrial activity is in line with emerging global trade scenario and tariff announcements. Along with these positive activities, there has been a significant increase in employment and performance.
Increase in pricing power
On the pricing front, the strong demand for Indian products has increased the pricing power of companies. Thus the sale figure is the highest since October 2013. The revenue of the manufacturing sector has increased as pricing power has increased along with the increase in the cost of raw materials. Given the strong April data, the growth of manufacturing sector is expected to increase in the coming times. Which will promote IIPs.
