India's Manufacturing Expands as PMI Rises to 58.1 in March

According to data published by HSBC and compiled by S&P Global, India's Manufacturing Purchasing Managers’ Index (PMI) increased to 58.1 in March 2025, rising from 56.3 in February. The increase was fueled by robust growth in new orders, with the New Orders Index hitting its highest mark in eight months, supported by heightened customer interest, positive demand conditions, and effective marketing initiatives.

Pranjul Bhandari, Chief India Economist at HSBC, said, "India registered a 58.1 manufacturing PMI in March, up substantially from 56.3 during the previous month. Although international orders slightly slowed, overall demand momentum remained robust, and the new orders index recorded an eight-month high of 61.5. Strong demand prompted firms to tap into their inventories, causing the fastest drop in finished goods stocks in over three years. Business expectations remained fairly optimistic, with around 30 per cent of survey participants foreseeing greater output volumes in the year ahead, compared to less than 2 per cent that anticipate a contraction." 

In reaction to improved new orders, manufacturers increased production at a rate exceeding historical averages. To satisfy increasing demand, companies utilized their inventories, resulting in the quickest decrease in finished goods stocks since January 2022. Firms likewise raised their input acquisitions at the fastest pace in seven months to address inventory shortages.

Despite a slight deceleration in international sales growth, demand from Asia, Europe, and the Middle East continued to be robust. Moreover, business outlooks stayed positive, with approximately 30 percent of companies expecting increased production in the year ahead. The manufacturing PMI for February fell to a 14-month low of 56.3, influenced by reduced growth in production and sales, as well as a deceleration in input buying.