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India’s Manufacturing Purchasing Managers’ Index (PMI) rose to 58.1 in March 2025, up from 56.3 in February, and its highest mark in 8 months.
According to data released by HSBC and compiled by S&P Global, the rise was driven by stronger new orders growth, as the New Orders Index reached its highest level in eight months, supported by increased customer interest, favourable demand conditions, and successful marketing initiatives. Advertisement The rise was driven by a surge in new orders, with total sales expanding at the fastest pace since July 2024, as a result of strong demand, positive customer interest, and effective marketing, leading to increased production at the fiscal year-end. Advertisement New export orders grew but at a slower three-month pace, with gains from Asia, Europe, and the Middle East.
To prevent stock shortages, manufacturers boosted input purchases to a seven-month high, well above the average. Suppliers largely met demand, though lead times shortened at a slower pace. “India registered a 58.
1 manufacturing PMI in March, up substantially from 56.3 during the previous month. Although international orders slightly slowed, overall demand momentum remained robust, and the new orders index recorded an eight-month high of 61.
5,” Pranjul Bhandari, Chief India Economist at HSBC, said. Strong demand prompted firms to tap into their inventories, causing the fastest drop in finished goods stocks in over three years. Business expectations remained fairly optimistic, with around 30 per cent of survey participants foreseeing greater output volumes in the year ahead, compared to less than 2 per cent that anticipate a contraction, he added.
The data also highlighted that to meet rising demand, firms tapped into their inventories, leading to the fastest drop in finished goods stocks since January 2022. Companies also increased input purchases at the quickest rate in seven months to counter stock depletion. Advertisement.
