HSBC India: Manufacturing sector activity at six-month high, exports at fastest growth in 14 years
HSBC India: On the price front, HSBC India said, cost pressure on companies reached the weakest level in 11 months. Cost-related inflation has declined for the second consecutive month, reducing the pressure on companies to increase production prices.

The country's activity in its manufacturing sector increased to a six-month high level of 57.7 in January 2025 following a record high in its growth in exports in almost 14 years. HSBC India's purchasing managers' index (PMI) for its manufacturing sector in December 2024 reached a one-year low at 56.4 percent.
HSBC Chief Economist (Weight) Pranjul Bhandari said strong domestic demand and international sales supported the growth in new orders. Manufacturers in India continued to increase production volumes. This growth is the fastest since October 2024. A PMI above 50 indicates expansion in activities and a figure below it indicates contraction.
On the price front, HSBC India said, cost pressure on companies has reached the weakest level in 11 months. Cost-related inflation has declined for the second consecutive month, reducing the pressure on companies to increase production prices. However, selling prices have increased strongly due to strong demand.
Bhandari said, that due to strong growth in sales and optimistic estimates of increasing activities, companies recruited additional employees at the beginning of the fourth quarter of the current financial year. The data shows that strong employment generation has enabled companies to control their workload.