Indian Manufacturing Powers Ahead with Record New Orders and Export Surge

Indian manufacturing sector begins 2025 with a significant boost. January records the fastest new orders rise since last July and steepest export uptick in nearly 14 years, signaling vibrant sector health. Employment sees promising growth as input cost inflation eases, boosting overall business confidence, says HSBC India Manufacturing PMI report.

India's manufacturing sector witnessed a remarkable acceleration at the start of 2025. According to HSBC India's Manufacturing PMI report for January, the sector's output saw robust expansion, driven by the fastest increase in new orders since last July and the steepest surge in exports in nearly 14 years.

Chief India Economist at HSBC, Pranjul Bhandari, highlighted the PMI's six-month high, attributing it to strong domestic and export demand, which bolstered new orders growth. The employment PMI also indicated vigorous job creation, as the index reached its peak since inception. Furthermore, input cost inflation eased for a second consecutive month, alleviating pressure on manufacturers to raise output prices.

The Purchasing Managers Index rose to 57.7 in January from December's 56.4, showcasing a robust improvement in sector health. Any reading above 50 indicates growth. Manufacturers credited this boost to stronger domestic demand and enhanced international sales. Companies ramped up production volumes significantly, with a notable 32% forecasting growth.