According to data provided by S&P Global on Wednesday, India’s manufacturing activity made up ground lost in February and reached its highest level in eight months in March, at 58.1 compared to 56.3 the previous month. According to the most recent reading, the sector’s health had significantly improved and was above its long-term average.
As the new orders index hit an eight-month high of 61.5, the announcement stated that the increase was fueled by greater new orders growth. March witnessed the biggest increase in overall sales since July 2024, with businesses praising the successful marketing campaigns, favorable demand, and enthusiastic customers.
Businesses then increased their output levels by the conclusion of the fiscal year 2024–2025. The rate of expansion was the strongest in eight months and was substantially higher than its historical norm. Despite a robust increase in new export orders in March, S&P Global reported that the growth rate slowed to a three-month low. Asia, Europe, and the Middle East were mentioned by panelists as areas where foreign sales increased.
Post-production inventories had the fastest decline in more than three years, according to the survey results, as a number of businesses reported using warehoused goods to satisfy growing sales demands. The decrease was notable overall and the fourth in a row. In order to prevent stockouts, Indian manufacturers increased their purchasing in March.
Suppliers to the Indian manufacturing sector were largely able to deliver supplies on time, according to S&P Global, even though input demand increased. For the thirteenth consecutive month, lead times decreased, but not by the greatest amount during this time. In the meantime, pre-production stocks increased significantly in March—the fastest increase in five months.
Although the total inflation rate increased to a three-month high, it was still far below its long-term normal. Prices for Indian items, on the other hand, increased more subtly. The March increase was the weakest in precisely one year and was mild. At last, optimistic projections for output levels in the upcoming year were supported by favorable market conditions, improved customer relations, and projects awaiting approval.
