India’s manufacturing sector saw its strongest growth in six months in January, driven by a surge in new orders and record-breaking export growth, according to the HSBC India Manufacturing PMI released on Monday. The PMI climbed to 57.7, up from 56.4 in December, signaling a sharp improvement in industrial activity.
New orders rose at the fastest pace since July, fueled by strong domestic demand and a nearly 14-year high in export growth. With international sales gaining momentum, manufacturers reported demand spikes from multiple global markets.
“India’s final manufacturing PMI marked a six-month high in January. Domestic and export demand were both strong, supporting new orders growth. The employment PMI hit its highest level since the series was created,” said Pranjul Bhandari, chief India economist at HSBC.
Despite easing input costs—the weakest in 11 months—firms continued raising selling prices due to strong demand and improved business confidence. Hiring also saw a significant boost, with employment in the sector reaching its highest level since records began.
With manufacturing activity accelerating and global demand on the rise, India’s industrial sector is poised for a strong start to 2025.
