India Manufacturing PMI rises to 54.7 in April, export orders hit 7-month high
Synopsis
This is a contradiction worth watching: India's factory PMI is expanding, but at nearly its slowest pace in four years, while inflation is running at its hottest in 44 months. The Middle East conflict is no longer just a geopolitical headline — it is showing up directly in Indian manufacturers' cost sheets, and the pricing pressure is accelerating.
Key Takeaways
India Manufacturing PMI rose to 54.7 in April 2025 , up from 53.9 in March.
Growth pace was the second-slowest since 2022 , despite the headline expansion.
Export orders hit a 7-month high , the fastest upturn since September 2024 .
Input costs rose at the fastest pace in 44 months ; output charges at the quickest in 6 months .
Middle East conflict cited as a key driver of inflationary pressure on manufacturers.
Business sentiment remained the second-highest since November 2024 , supported by marketing optimism.
India's manufacturing Purchasing Managers' Index (PMI) climbed to 54.7 in April 2025, up from 53.9 in March, signalling continued resilience in the country's factory sector even as growth rates remained the second-weakest in nearly four years, according to HSBC Flash India PMI data released on Monday, 4 May. Output, new orders — including export orders — and employment all expanded moderately during the month.
Key Developments in April
The headline PMI reading of 54.7 — any figure above 50 indicates expansion — was driven by mild recoveries in new business intakes and production volumes. Export orders stood out as a particularly bright spot, recording the fastest upturn since September 2024. Despite the overall positive direction, the pace of improvement remained the second-slowest since 2022, reflecting underlying caution among manufacturers.
Notably, survey respondents cited competitive market conditions, client reluctance to approve pending quotes, and spillovers from the Middle East conflict as key factors tempering stronger growth. Advertising activity and demand resilience, however, continued to support sales and production levels.
Inflation Pressures Mount
Cost pressures intensified sharply during April. Input costs rose at the fastest pace in 44 months — since August 2022 — while output charges increased at the quickest rate in six months, according to the HSBC data. Both trends were attributed in part to the ongoing war in the Middle East, which manufacturers indicated was exerting sustained upward pressure on raw material prices.
Pranjul Bhandari, Chief India Economist at HSBC, said:
Point of View
But the detail is more sobering. Growth is expanding at nearly its slowest pace in four years, which means the headline number is doing a lot of heavy lifting. More worrying is the inflation signal: input costs at a 44-month high suggest that the Middle East conflict is now a domestic economic variable, not just a foreign policy concern. If these cost pressures are passed on to consumers — and the six-month high in output charges suggests they already are — the RBI's inflation calculus gets considerably more complicated heading into the next policy review.
NationPress
28 Jul 2026
Frequently Asked Questions
What is India's manufacturing PMI for April 2025?
India's manufacturing PMI rose to 54.7 in April 2025, up from 53.9 in March, according to HSBC Flash India PMI data. A reading above 50 signals expansion in factory activity.
Why is India's manufacturing PMI growth considered slow despite the rise?
Although the PMI rose to 54.7, the pace of improvement was the second-slowest since 2022, reflecting headwinds from competitive conditions, client hesitation on approving orders, and Middle East conflict-related disruptions.
How is the Middle East conflict affecting Indian manufacturers?
According to the HSBC PMI data, the Middle East conflict is exerting upward pressure on input costs, which rose at the fastest pace in 44 months — since August 2022. Output charges also increased at the quickest rate in six months as a result.
What was the trend in India's export orders in April 2025?
Export orders were a bright spot in April 2025, recording the fastest upturn since September 2024, suggesting resilient external demand even amid global uncertainties.
What is the outlook for India's manufacturing sector?
Indian manufacturers remained broadly optimistic, with business confidence at its second-highest level since November 2024. Sentiment was supported by hopes that marketing efforts would yield results and that pending projects would receive client approval.
