India's Manufacturing Sector Hits a 10-Month High

India's manufacturing sector witnessed its strongest growth in 10 months this April, fueled by a significant surge in export orders and robust output growth. The HSBC India Manufacturing Purchasing Managers' Index (PMI) rose to 58.2, marking the best performance since June 2024.

Export Orders Surge to Near Record Highs

Export orders grew at their second-fastest pace in over 14 years, indicating a potential shift in global production towards India. This growth is attributed to evolving trade landscapes and recent US tariff measures.

Consumer Goods Lead the Charge

Consumer goods manufacturers led the sector's growth, with the fastest output rise among all surveyed sectors. Despite rising costs, firms managed to pass on the expenses to customers, raising selling prices at the steepest rate since October 2013.

Optimism and Expansion Ahead

With over 30% of manufacturers anticipating higher output in the coming year, business confidence remains high. This optimism is supported by strong demand, effective marketing, and new client acquisitions, signaling a robust start to FY26 for India's manufacturing sector.