FX.co ★ India Manufacturing Growth Accelerates in March

The HSBC India Manufacturing PMI rose to 57.6 in March 2025 from February's figure of 56.3, according to preliminary data. This increase indicates improved operating conditions and aligns closely with the 2024/25 fiscal year average. The growth is attributed to a rapid rise in sales and a significant boost in new international business following the US tariff announcement. Additionally, production growth accelerated, marking its fastest pace since July 2024. Manufacturers also reported a notable uptick in hiring and inventory purchases. However, they faced increased margin pressure due to rising input cost inflation, even as the increase in factory gate prices slowed to its lowest in a year. Looking forward, manufacturers were slightly less optimistic about future output prospects than they were in February.