India Manufacturing PMI Improves Slightly to 54.7 in April, Cost Pressures Intensify

India’s manufacturing sector saw a marginal improvement in activity in April, although growth remained subdued and cost pressures intensified, according to the HSBC India Manufacturing PMI compiled by S&P Global.

The Manufacturing PMI rose to 54.7 in April, up from 53.9 in March, indicating continued expansion. However, the pace of growth remained among the weakest seen in nearly four years.

Even as April data showed mild recoveries in the growth of new business intakes and production among Indian manufacturers, the rates of increase were still the second-weakest since 2022. Firms attributed the modest growth to competitive pressures, delayed client decisions and the impact of the ongoing West Asia conflict.

Inflation Pressures Intensify

Input costs rose at the fastest pace since August 2022, driven by higher prices for fuel, raw materials and intermediate goods. Companies also raised selling prices at the quickest rate in six months, though not fully in line with cost increases.

Survey respondents cited the West Asia conflict as a key factor contributing to rising input costs and supply disruptions.

Export demand strengthened during the month, with new overseas orders rising at the fastest pace in seven months. Manufacturers reported improved demand from markets including Europe, Asia and the West Asia.

Hiring and Outlook

Employment continued to grow, with hiring rising at a ten-month high as firms expanded capacity. Despite cost pressures, manufacturers remained optimistic about future output, supported by expectations of improved demand and ongoing projects.

At the same time, companies increased inventories of finished goods, while growth in input purchases slowed, reflecting cautious demand conditions.

Data for the survey were collected between 8 and 24 April 2026.