In January 2025, India’s factory activity surged to its fastest growth rate in six months, driven by strong demand and output, as indicated by a private survey by S&P Global. The HSBC final India Manufacturing Purchasing Managers’ Index (PMI) rose to 57.7 from December’s 56.4, slightly below the early estimate of 58.0.
Since July 2021, India’s PMI has consistently shown expansion above the 50-mark, a positive trend for the economy facing a slowdown with weak consumption. In January, the final manufacturing PMI recorded a six-month high, driven by robust domestic and export demand, which buoyed new orders growth – Pranjul Bhandari, HSBC’s chief India economist.
New orders, a key demand indicator, surged sharply, driven by strong export orders expanding at the fastest pace in nearly 14 years. Output sub-index reached a three-month peak. This upbeat trend instilled confidence for the next 12 months, leading firms to expand workforces significantly, the strongest since at least March 2005.
The boost in factory activity was supported by lower inflation, with input prices rising slowly and allowing firms to increase selling prices moderately last month. This is crucial because headline inflation has generally exceeded the Reserve Bank of India’s 4% target over the past year.
Sources News From Various Digital Platforms, Websites, Journalists, And Agencies.
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