India’s manufacturing sector experienced a significant surge in April 2025, achieving its fastest growth in 10 months, driven largely by robust export demand and an increase in employment. According to the latest report from the HSBC India Manufacturing Purchasing Managers' Index (PMI), the sector’s growth reached 58.2, a slight improvement from March’s reading of 58.1. A PMI reading above 50 indicates expansion, and this figure marks the 46th consecutive month of growth in the country’s manufacturing activity.

The surge in manufacturing activity was primarily fueled by a marked increase in both domestic and international orders. Notably, export orders saw the second-fastest growth since March 2011. This growth is indicative of a shift in production as companies around the world adapt to new global trade dynamics, including shifting trade relationships and tariff adjustments by the United States.

The uptick in export demand has had a profound impact on India’s manufacturing output, boosting the pricing power of Indian companies. As a result, manufacturers raised their selling prices, with the pace of this price hike reaching its highest point since October 2013. The demand for Indian goods in international markets has been particularly strong, with export orders for April marking the highest growth rate in 14 years, excluding a brief spike in January 2025.

This growth was not limited to exports alone; the domestic market also played a crucial role. The survey found that the consumer goods sector saw the fastest increase in output, supported by a sharp rise in new business. The improvement in both domestic and international demand is attributed to a post-pandemic recovery, along with India's increasing competitive edge in global markets.

Despite the increased pricing pressures on manufacturers due to rising input costs, the overall inflation rate remained relatively controlled. Input prices, including for materials like steel, labor, and transportation, rose at the fastest pace in four months, yet these were offset by the significant increase in output prices. The margin between input and output price inflation signals that Indian manufacturers were successfully passing on the increased costs to their clients without impacting their profitability.

On the employment front, the survey revealed that manufacturers continued to enhance their staffing levels in April to meet the rising output demands. Approximately 9% of survey respondents reported an increase in their workforce, with both permanent and temporary contracts being offered to workers. This marks a positive sign for India's labor market, reflecting the resilience of the manufacturing sector despite global uncertainties.

India’s manufacturing PMI outperformed its counterparts in many other parts of Asia. In contrast to several Asian economies that experienced contractions in manufacturing activity, India’s PMI remained robust. Experts suggest that this strength in domestic demand, coupled with the growing export potential, could be crucial for sustaining economic growth amid external challenges such as global trade uncertainty.

The outlook for India's manufacturing sector remains positive as companies continue to ramp up production and hire additional workers to meet growing demands. The expansion of manufacturing activity in April reflects a broader trend of economic recovery and resilience, underscoring the importance of India’s manufacturing sector as a key driver of its post-pandemic growth.

Overall, India’s manufacturing sector has shown remarkable strength in April, setting the stage for further growth in the months ahead. With continued export demand, rising production levels, and an improving job market, the country’s manufacturing sector is positioned to maintain its upward trajectory, contributing significantly to the broader economic recovery.

The Upcoming IPOs in this week and coming weeks are Srigee DLM, Manoj Jewellers.

The Current active IPO are Wagons Learning, Kenrik Industries.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.