India's manufacturing sector expanded at its fastest pace in three years in April 2026, with the S&P Global India Manufacturing PMI surging to 58.4 from 57.1 in March. Any reading above 50 indicates expansion, and the April figure is well into expansion territory, signalling robust momentum in India's factory sector. The reading was the highest since June 2023 and significantly above the long-run average of 53.8.
New orders index rose to 60.8, its highest level since 2010, as domestic demand strengthened and export orders improved on the back of India's competitive positioning in global supply chains. Employment in the manufacturing sector expanded for the 10th consecutive month, with the employment sub-index hitting 56.2. Input cost pressures moderated slightly but output price inflation remained elevated, suggesting manufacturers are successfully passing on costs to customers.
The PMI data is consistent with the IIP data showing strong growth in capital goods and consumer durables production. Economists note that the sustained above-55 PMI readings through Q4 FY26 support the GDP growth outperformance. HSBC economist Pranjul Bhandari said the data confirms India's manufacturing sector is in a genuine structural expansion phase, driven by PLI scheme investments, rising domestic consumption and increasing integration into global supply chains as companies diversify away from China.
