January data also showed a pick-up in growth of buying levels and record job creation. Cost pressures retreated to their weakest in 11 months, but selling prices rose solidly amid buoyant demand.
Following a moderation in growth in December, Indian goods manufacturers kicked off 2025 on a robust note, HSBC India manufacturing PMI data showed.
The steepest upturn in exports in nearly 14 years led to new orders rising at the quickest pace since last July, thereby resulting in a stronger expansion in output.
Business confidence strengthened and vendor performance improved.
Meanwhile, business confidence strengthened. Rising from December’s one-year low of 56.4 to 57.7 in January, the seasonally-adjusted HSBC India manufacturing PMI signalled a robust improvement in the health of the sector, S&P Global Ratings said in a release.
The rate of expansion was the quickest since last July and outpaced its long-run average.
Total new business in India expanded at the fastest rate in six months. International demand for Indian goods strengthened in January, with panellists noting gains from across the globe.
Indian manufacturers continued to scale up production volumes. The latest increase was substantial and the fastest since October 2024.
Companies turned more optimistic about output prospects, with nearly 32 per cent of firms forecasting growth and just 1 per cent expecting a reduction.
Buoyant underlying demand, better customer relations, favourable economic conditions and marketing efforts all bode well for growth prospects.
Robust sales gains and upbeat forecasts prompted companies to recruit additional workers as January started. The extent to which employment expanded was the greatest seen in nearly 20 years of data collection.
Indian manufacturers also accelerated the rate at which inputs were purchased. January’s upturn was the strongest in three months and sharp by historical standards. Firms were successful in their efforts to lift inventories as suppliers were able to deliver materials in a timely manner.
Vendor performance improved to the greatest extent in eight months in January, while the accumulation in input stocks was the fastest since October 2024.
Finished goods inventories decreased for the second month running in January, as a mismatch in growth of demand over production compelled firms to dig into their warehouses. The rate of stock depletion was marked and the most pronounced in close to three years.
Input costs increased in the month, amid reports of greater outlays on freight, labour and materials.
The rate of inflation was modest overall and the weakest since February 2024, however. Prices charged for Indian goods rose at the slowest pace in four months during January, albeit one that was marked and above the long-run series average.
Capacity pressures among manufacturers in India remained mild, as indicated by only a fractional increase in outstanding business volumes.
Fibre2Fashion News Desk (DS)
