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India's manufacturing sector activity improved in the month of April, as factory orders and production rose at the strongest rates in 2023 so far, more jobs were created and companies stepped up input purchasing owing to stock-replenishment efforts. According to the report, the seasonally adjusted S&P Global India Manufacturing Purchasing Managers’ Index (PMI) surged to 57.2 in April from 56.4 in March. 

The report further noted that new orders placed with goods producers rose at the quickest pace since last December. The rate of expansion was sharp and above its long-run average. The upturn was supported by favourable market conditions, demand strength and publicity. Likewise, output increased at a sharp rate that was the most pronounced in four months. 

On the inflation front, the overall rate of inflation remained below its long-run average despite quickening since March. Manufacturers signalled higher operating costs in April linked to fuel, metals, transportation and some other raw materials. Charge inflation also quickened in April, reaching a three-month high and matching its long-run average. 

Meanwhile, Indian manufacturers were confident that production volumes would be higher in 12 months' time, amid demand resilience, client enquiries, orders pending approval and marketing efforts. Moreover, the overall level of positive sentiment rose since March.