India’s manufacturing growth hits six-month high in January: HSBC PMI survey
- The HSBC India Manufacturing Purchasing Managers Index, compiled by S&P Global, came in at 57.7 in January, up from 56.4 in December and 56.5 in November. It was 57.5 in October and 56.5 in September.
New Delhi: India’s manufacturing growth, which moderated in December, rose to a six-month high in January on the back of rising new export orders, a private survey released on Monday said.
The HSBC India Manufacturing Purchasing Managers Index (PMI), compiled by S&P Global, came in at 57.7 in January, up from 56.4 in December and 56.5 in November. It was 57.5 in October and 56.5 in September. A PMI reading above 50 indicates an expansion and below 50 a contraction.
The January PMI number was based on responses from 400 manufacturers. "Following a moderation in growth during December, Indian goods producers kicked off 2025 on a robust note. With new orders rising at the quickest pace since last July, fuelled by the steepest upturn in exports in nearly 14 years, there was a stronger expansion in output," the survey said. "January data also showed a pick-up in growth of buying levels and record job creation," it added.
To be sure, India witnessed slow growth in Q2FY25, with manufacturing growth falling to 2.2% from 14.3% in the year-ago quarter and 7% in the June quarter. Overall, India’s GDP growth in the September quarter slowed to 5.4%. GDP growth was 6.7% in the first quarter and 8.2% in the year-ago quarter. GDP data for Q3 and FY25 is expected at the end of the month.
"India’s final manufacturing PMI marked a six-month high in January. Domestic and export demand were both strong, supporting new order growth. The employment PMI suggested robust job creation in the manufacturing industry, as the index increased to its highest level since the series was created," said Pranjul Bhandari, chief India economist at HSBC.
"Input cost inflation eased for a second month, relieving pressure on manufacturers to raise final output prices," she added.
Infra output growth slowed in December
Interestingly, India's infrastructure output, which accounts for about two-fifths of industrial production, slowed in December from the previous month as production in four of the eight core sectors – coal, natural gas, refinery products and fertilisers – fell during the month, according to data released last week by the commerce ministry.
"International demand for Indian goods strengthened in January, with panellists noting gains from across the globe. Notably, the rate of expansion in new export orders was the best seen in just under 14 years," the HSBC survey said. "Subsequently, manufacturers in India continued to scale up production volumes. The latest increase was substantial and the fastest since October 2024," it added.
The survey revealed that Indian companies have grown more optimistic about output prospects, with nearly 32% expecting growth and only 1% anticipating a decline. "Input costs increased in January, amid reports of greater outlays on freight, labour and materials. The rate of inflation was modest overall and the weakest since February 2024," it said.
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Business NewsEconomyIndia’s manufacturing growth hits six-month high in January: HSBC PMI survey
First Published:3 Feb 2025, 03:37 PM IST
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