The April manufacturing purchasing managers' index in India stood at 54.7, compared to 53.9 in March, according to the HSBC Flash India PMI data. This was due to an increase in new orders (both domestic and export) and employment.

The data indicate that India's manufacturing industry is robust as far as growth is concerned, as evidenced by the increase in orders in April. This was also aided by the country's exports, leading to the fastest growth in six months.

Inflation risks in India increased due to tensions in West Asia, causing input prices and output prices to increase at the highest rate in 44 months and six months, respectively.

Pranjul Bhandari, Chief Economist (India), HSBC, said the effects of the West Asia conflict are becoming more pronounced, particularly in the form of inflation, which has driven production costs to rise at the fastest pace since August 2022 and product prices to rise at the fastest rate in six months.

Despite rising from 53.9 in March to 54.7 in April, the seasonally adjusted HSBC India Manufacturing Purchasing Managers' Index (PMI) indicated the second-slowest improvement in overall operating conditions in nearly four years. The PMI measures overall conditions based on new orders, production, employment, supplier delivery times, and purchased stocks.

Survey participants indicated that stable advertising and demand supported sales and production. However, growth was hampered by the competitive environment, the war in West Asia, and customers' reluctance to approve pending quotations. Indian manufacturers remained optimistic about growth prospects. The overall level of positive sentiment declined slightly from March. However, it was at its second-highest level since November 2024.