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India's manufacturing sector grows to highest in eight months at 58.1 in March

02 Apr 2025 Evaluate

Recovering the ground lost in February, India's manufacturing sector growth picked up to its highest in eight months in March as a faster upturn in total sales underpinned a sharper increase in output. March's acceleration came despite a mild slowdown in international order growth. According to the survey report, the seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) surged to 58.1 in March as against 56.3 in February. 

The report further said that buoyant demand led companies to tap into their inventories to meet increased client appetite, resulting in the most rapid decline in finished goods stocks since January 2022. Firms aimed to counter declining stock levels by acquiring additional inputs for their production processes at the quickest pace seen in seven months. 

On the price front, cost burdens rose further, amid higher prices for copper, electronic items, leather, LPG and rubber. The overall rate of inflation accelerated to a three-month high, but was well below its long-run average. However, there was a softer increase in prices charged for Indian goods. March's rise was moderate and the weakest in exactly one year.

As per the survey report, pre-production inventories rose sharply in March and at the quickest pace in five months. Finally, favourable demand conditions, better customer relations and projects pending approval underpinned upbeat forecasts for output levels in the coming 12 months.


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