India’s manufacturing sector experienced a remarkable surge in April, reaching its highest growth in 10 months, thanks to a sharp increase in export orders and robust output. The HSBC India Manufacturing Purchasing Managers' Index (PMI) climbed to 58.2, slightly above March’s 58.1, marking its best performance since June 2024. A PMI reading above 50 indicates growth, signaling a thriving manufacturing environment.

The export boom, fueled by shifting global trade dynamics and fresh U.S. tariffs, drove the rise in new orders. Consumer goods manufacturers led the charge, recording the fastest output growth. Significant demand came from regions like Africa, Asia, Europe, the Middle East, and the Americas.

Although input costs rose, businesses passed these costs on to customers by raising selling prices at their fastest rate in over 11 years. Hiring also picked up, with 9% of companies adding both permanent and temporary roles to meet growing demand.

The strong PMI data signals a positive start to FY26 for India’s manufacturing sector, with businesses optimistic about sustained growth, driven by rising demand and new client acquisition. India’s manufacturing momentum continues to play a pivotal role in the country’s economic expansion.