India’s manufacturing sector saw a significant boost in March, reaching an eight-month high, driven by strong demand, increased factory orders, and higher production levels, according to a recent survey.
The HSBC India Manufacturing Purchasing Managers’ Index (PMI) rose to *58.1 in March, up from **56.3 in February, signaling a *substantial improvement in the sector’s health and staying above its long-term average. This marks a strong recovery from February’s 14-month low, when new orders and production had slowed.
A PMI score above 50 indicates *expansion, while below *50 signals *contraction. The survey highlighted that new orders, a key sub-component, grew at their **fastest pace since July 2024, with businesses crediting *positive customer interest, strong demand, and effective marketing strategies.
Manufacturers responded by *scaling up production volumes, marking the sharpest expansion in **eight months. Although **new export orders remained strong, their growth rate eased slightly, with businesses reporting steady gains from *Asia, Europe, and the Middle East.
Despite a minor slowdown in international orders, overall *demand momentum remained robust, pushing the *New Orders Index to an *eight-month high of 61.5. To meet demand, companies relied on **existing inventories, causing the sharpest drop in finished goods stocks since *January 2022.
Looking ahead, business confidence remains high, with nearly 30% of firms expecting higher output in the next *12 months, while fewer than *2% foresee a decline.
The *HSBC India Manufacturing PMI, compiled by **S&P Global, is based on responses from **around 400 purchasing managers, providing insights into India’s *industrial performance and economic outlook.
