New Delhi, May 2 || India's manufacturing activity surged to a 10-month high of 58.2 on the purchasing manager's index (PMI) in April, compared with 58.1 in the previous month, driven by higher exports and domestic demand, according to a HSBC India survey released on Friday.
A reading above the critical 50 mark on the PMI denotes expansion in manufacturing activity, while a decline below this number reflects contraction.
"Respondents attributed growth to better domestic and international demand. With the sole exception of January, new business from abroad grew to the greatest degree in over 14 years at the start of the 2025/26 fiscal year," the survey noted.
HSBC India's Chief Economist Pranjul Bhandari said that the increase in new export orders in April may indicate a potential shift in production to India, as businesses adapt to the evolving trade landscape and tariff announcements by the United States.
Consumer goods companies reported the fastest increase among various sectors. A sharp rise in new business was a key factor for the latest improvement in output growth.