India's manufacturing sector expanded at the quickest pace in eight months as a faster upturn in total sales underpinned a sharper increase in output, data compiled by S&P Global showed on Wednesday.
The HSBC final manufacturing Purchasing Managers' Index climbed to 58.1 in March from 56.3 in February. The flash reading was 58.6. A score above 50.0 indicates expansion.
New orders grew at the quickest pace since July 2024, spurred by positive customer interest, favorable demand conditions, and successful marketing initiatives. As a result, firms increased production volumes at the end of the financial year and at the fastest pace in eight months.
Meanwhile, the growth in new export orders eased to a 3-month low. The overall export demand was driven by gains from Asia, Europe, and the Middle East.
Capacity pressures among manufacturers remained mild, with outstanding business rising at a marginal pace that was slower than in February. Employment nevertheless rose at a solid rate in March.
On the price front, input price inflation rose to a 3-month high amid higher costs for copper, electronic items, leather, LPG, and rubber. Meanwhile, selling prices rose at a slower rate.
Looking ahead, Indian manufacturers remained confident about output expectations for the next twelve months, buoyed by favorable demand conditions, better customer relations, and projects pending approval.