Summary:

India’s manufacturing sector surged in March, recording its fastest growth in eight months, as strong domestic demand propelled company sales, according to a private survey. Rebounding from a 14-month low in February, the HSBC India Manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, climbed to 58.1 in March from 56.3 the previous month. A PMI reading above 50 signifies expansion, while a figure below 50 indicates contraction. March marked the 45th consecutive month of growth in the manufacturing sector.

Although international orders saw a slight slowdown, robust domestic demand led firms to draw down their inventories at the sharpest rate since January 2022. In response, companies ramped up input purchases at the fastest pace in seven months to replenish stock. The most significant driver behind the PMI increase was the new orders index, which hit 61.5, an eight-month high. Businesses credited this growth to heightened customer interest, favourable market conditions and effective marketing strategies. While new export orders did rise, their growth rate eased to a three-month low, with sales expanding in regions including Asia, Europe and West Asia. Meanwhile, Indian manufacturers continued to strengthen their workforce, albeit at a slower pace in March.

Source: IBEF

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