INDIA'S MANUFACTURING SECTOR OUTPUT.NEW ORDERS GROW STRONGEST IN MARCH '24

Quantities of purchases increased at the quickest rate since mid-2023, and one that was among the strongest in nearly 13 years with companies seeking to build-up stocks in advance of expected improvements in sales

- NIVEDITA MUKHERJEE

India's manufacturing sector ended the current fiscal year with the HSBC India Purchasing Managers' Index (PMI) index climbing to a 16-year high of 59.1 in March, from 56.9 in February, on the back of the strongest increases in output and new orders since October 2020, near-record increase in input stocks and renewed expansion in employment.

The seasonally adjusted HSBC India Manufacturing PMI swung up as manufacturing output rose for the 33rd month running in March and growth turned quickest in nearly three-and-a-half years during March, across the consumer, intermediate and investment goods sectors.

As was the case for new orders amid reports of buoyant demand conditions. Inflows of new work strengthened from both domestic and export markets, the latter reportedly reflecting better sales to Africa, Asia, Europe and the US. New export orders increased at the fastest pace since May 2022.