New Delhi: India’s manufacturing sector expanded at its fastest pace in 10 months in April. The HSBC India Manufacturing Purchasing Managers’ Index (PMI), compiled by S&P Global, rose to 58.2 in April from 58.1 in March and 56.3 in February. The index was at 57.7 in January and 56.4 in December..
In PMI parlance, a reading above 50 indicates expansion, and below 50 a contraction.
Manufacturing output rose 3.5% in Q3 FY25, up from 2.1% in the prior quarter but significantly below the 14% and 7.5% recorded in Q4 FY24 and Q1 FY25, respectively.
Manufacturing PMI data is an economic indicator that measures the activity level in the manufacturing sector. It is based on a survey of purchasing managers across manufacturing industries and provides insights into business conditions, including production, new orders, employment, supplier delivery times, and inventory levels.
The PMI is a weighted average of the five indices, namely New Orders (30%), Output (25%), Employment (20%), Suppliers’ Delivery Times (15%), and Stocks of Purchases (10%). The index is compiled by S&P Global from responses to questionnaires sent to purchasing managers in a panel of around 400 manufacturers.
Meanwhile, India’s economic growth rebounded in the December quarter after a slowdown in September but remained below the previous fiscal year’s pace. GDP grew 6.2% in Q3 FY25—the slowest since Q4 FY23, except for Q2 FY25’s revised estimate of 5.6%. The National Statistics Office (NSO) has projected 6.5% GDP growth for FY25.
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