India's manufacturing sector growth hits 8-month high in March 2025: PMI

India's manufacturing sector growth surged in March, driven by strong demand and increased production, according to HSBC survey.

India's manufacturing sector growth rose to an eight-month high in March, driven by quicker increases in factory orders and production amid buoyant demand conditions, a monthly survey said on Wednesday (April 2, 2025).

The seasonally adjusted HSBC India Manufacturing Purchasing Managers' Index (PMI) was at 58.1 in March, up from 56.3 in February, indicating a substantial improvement in the health of the sector that was above its long-run average.

In February, India's manufacturing PMI fell to a 14-month low amid softer increase in new orders and production.

In PMI parlance, a print above 50 means expansion, while a score below 50 denotes contraction.

Manufacturing sector growth in India recovered the ground lost in February, largely driven by a stronger contribution from its largest sub-component: the New Orders Index.

"March saw total sales expand to the greatest extent since July 2024, with companies remarking on positive customer interest, favourable demand conditions and successful marketing initiatives," the survey noted.

Accordingly, firms scaled up production volumes at the end of the 2024/25 fiscal year. The rate of expansion was sharp, above its historical average and the strongest in eight months.