New Delhi, March 3
The Indian manufacturing sector's strong start to 2025 continued in February. Despite slowing to the weakest since December 2023, rates of expansion in output, employment and sales remained elevated in the context of the long-run average, according to the HSBC survey released on Monday.
Favourable domestic and international demand prompted firms to increase purchasing activity and hire extra workers at above-trend rates. However, demand buoyancy kept charge inflation at an elevated level despite softer cost pressures, the HSBC Manufacturing Purchase Manager’s Index survey states.
"India recorded a 56.3 manufacturing PMI in February, down slightly from 57.7 during the prior month, but still firmly within expansionary territory. Robust global demand continued to boost growth in the Indian manufacturing sector, which increased its purchasing activity and employment,” said Pranjul Bhandari, Chief India Economist at HSBC.
“Business expectations also remained very strong, with nearly one-third of survey participants foreseeing greater output volumes in the year ahead,” Bhandari added.