New Delhi, May 4 (BNP): India’s manufacturing sector saw a slight improvement in activity during April, with the HSBC India Manufacturing Purchasing Managers’ Index (PMI) rising to 54.7 from 53.9 in March, according to a private survey.

The reading indicates continued expansion in factory activity, though the pace of growth remains relatively subdued compared to previous years. A PMI above 50 reflects expansion in the sector.

The survey showed that both new orders and production increased during the month, supported by steady domestic demand and improving export performance. However, growth was partially restrained by competitive market conditions and global uncertainties.

Cost pressures remained elevated, with input prices rising at their fastest rate in over a year and a half. Higher costs of raw materials such as fuel, chemicals, aluminium, and petroleum products contributed to inflationary pressures, influenced in part by global geopolitical tensions.

Despite these challenges, employment conditions remained positive, with manufacturers increasing hiring at the fastest pace in ten months, reflecting continued business confidence.

Export demand also strengthened, with new overseas orders rising to a seven-month high, driven by improved demand from several international markets.

Economists noted that while the manufacturing sector continues to support India’s economic growth through output, jobs, and exports, rising costs and global headwinds may weigh on profitability in the coming months.

Overall, the data points to a steady but uneven recovery, with the sector remaining an important driver of India’s broader economic momentum.