Manufacturing Activity on the Rise

India's manufacturing sector has witnessed its fastest growth in eight months, driven by a significant surge in new orders and an overall improvement in demand. Despite a slight slowdown in the growth of international orders, the sector's performance in March marked a notable acceleration.

Key Highlights

The HSBC India Manufacturing Purchasing Managers' Index (PMI) climbed to 58.1 in March, up from 56.3 in February, reaching its highest level in eight months. This growth was supported by buoyant demand, prompting companies to utilize their inventories to meet the increased client appetite, leading to the most rapid decline in finished goods stocks since January 2022.

Looking Ahead

As the manufacturing sector continues to show signs of robust growth, stakeholders are keenly watching the trends in demand and order books to gauge the sustainability of this upward trajectory.