India's manufacturing PMI hits 16-year high
ECONOMY & POLICY

India's manufacturing PMI hits 16-year high

India's manufacturing Purchasing Managers' Index (PMI) has surged to a remarkable 16-year high, marking a significant upturn in the country's industrial sector. According to recent data released by IHS Markit, the PMI for manufacturing climbed to 58.6 in March, the highest level since April 2005. This surge is indicative of robust growth in output and new orders, reaching their peak since October 2020.

The resurgence in manufacturing activity can be attributed to several factors. Firstly, there has been a notable increase in domestic demand, fueled by various government initiatives and a gradual recovery from the economic slowdown induced by the COVID-19 pandemic. Additionally, improved sentiment among businesses and consumers has bolstered investments and consumption, further propelling manufacturing growth.

The expansionary trend is evident across various sub-sectors, with output levels registering a substantial rise. Moreover, new orders have surged, indicating a growing appetite for Indian manufactured goods both domestically and internationally. Export orders have notably strengthened, reflecting the competitiveness of Indian products in global markets.

Employment in the manufacturing sector has also shown signs of improvement, with businesses expanding their workforce to meet the rising demand. However, challenges persist, including supply chain disruptions and input cost pressures, which have the potential to dampen the pace of growth if left unaddressed.

Looking ahead, sustaining this momentum will be crucial for India's economic recovery and resilience. Continued policy support, coupled with efforts to address structural bottlenecks and enhance competitiveness, will be imperative to capitalize on the current upswing in manufacturing activity and ensure its long-term sustainability.

India's manufacturing Purchasing Managers' Index (PMI) has surged to a remarkable 16-year high, marking a significant upturn in the country's industrial sector. According to recent data released by IHS Markit, the PMI for manufacturing climbed to 58.6 in March, the highest level since April 2005. This surge is indicative of robust growth in output and new orders, reaching their peak since October 2020. The resurgence in manufacturing activity can be attributed to several factors. Firstly, there has been a notable increase in domestic demand, fueled by various government initiatives and a gradual recovery from the economic slowdown induced by the COVID-19 pandemic. Additionally, improved sentiment among businesses and consumers has bolstered investments and consumption, further propelling manufacturing growth. The expansionary trend is evident across various sub-sectors, with output levels registering a substantial rise. Moreover, new orders have surged, indicating a growing appetite for Indian manufactured goods both domestically and internationally. Export orders have notably strengthened, reflecting the competitiveness of Indian products in global markets. Employment in the manufacturing sector has also shown signs of improvement, with businesses expanding their workforce to meet the rising demand. However, challenges persist, including supply chain disruptions and input cost pressures, which have the potential to dampen the pace of growth if left unaddressed. Looking ahead, sustaining this momentum will be crucial for India's economic recovery and resilience. Continued policy support, coupled with efforts to address structural bottlenecks and enhance competitiveness, will be imperative to capitalize on the current upswing in manufacturing activity and ensure its long-term sustainability.

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code