India’s manufacturing growth is on fire. In June 2025, the HSBC India Manufacturing Purchasing Managers’ Index (PMI) jumped to 58.4, the highest in 14 months. This marks a big rise from May’s 57.6 and is way above the long-term average of 54.1.
This strong number tells a simple story — India’s factories are not just busy, they are booming. And it’s not just local demand. New export orders surged, pushing the growth engine into top gear.
Strong Finish to Q1 FY25
The manufacturing sector closed the first fiscal quarter with serious momentum. Output and new orders were both up. Even better, employment growth hit a record high. For many factories, this was the busiest month in over a year.
One key reason? International buyers are back — and they’re hungry for Indian goods. In fact, June saw one of the fastest export order rises in over 20 years of PMI data.
Goods producers responded quickly. They increased input buying to match the growing demand and built up raw material stocks.
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Input Costs Down, Demand Up
Here’s the good news for businesses: cost inflation dropped to its lowest since February. This gave companies some breathing space. While prices of freight, labour, and metals were still high, strong demand allowed producers to pass these costs to customers.
On the production side, volume growth was the fastest since April 2024. Firms credited this to better efficiency, higher sales, and rising demand.
And yes — new order inflow picked up pace, especially from foreign markets. Consumer, intermediate, and investment goods all saw sharp rises.
Stocks Shift, Outlook Bright
There was one catch. While input stockpiles grew, finished goods inventories fell. Why? Many companies had to use up warehouse stock to meet rising orders.
But that’s not a bad sign. It shows the strength of demand — and confidence among businesses.
Input price inflation also cooled despite iron and steel prices rising. More importantly, backlogs grew, meaning more work is piling up — a solid sign of ongoing business.
What This Means for India
The message is clear: India manufacturing growth is gaining real power. And it’s being noticed globally. With rising exports, strong hiring, and better efficiency, the sector is showing that ‘Make in India’ is not just a slogan — it’s a working model.
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