New Delhi, June 2 (IANS) India’s manufacturing sector continued its healthy performance in May, with the HSBC India Manufacturing Purchasing Managers’ Index (PMI) recording a reading of 57.6, it said on Monday.

While slightly lower than April’s 58.2, the index remains well above the neutral 50 mark — signifying sustained expansion in the sector, according to data compiled by S&P Global.

“India’s May manufacturing PMI signalled another month of robust growth in the sector,” said Pranjul Bhandari, Chief India Economist at HSBC.

“The acceleration in employment growth to a new peak is certainly a positive development. Input cost inflation is picking up, but manufacturers seem to be able to lessen the pressure on profit margins by raising output prices,” she added.

The growth was powered by solid domestic and overseas demand, as well as successful marketing efforts that boosted export orders to one of the highest levels seen in the last three years.

Firms across the country reported rising interest from key markets in Asia, Europe, West Asia, and the United States.

Manufacturing companies also stepped up hiring in May, with job creation reaching a record high since the PMI survey began.

Notably, businesses focused on strengthening their permanent workforce, enabling smoother operations and more efficient management of workloads.

This strong employment growth comes as a boost for India’s young workforce and reflects continued investment in the sector’s future.

Input costs saw a moderate rise, influenced by items such as aluminium, cement, iron, leather, rubber, and sand, along with freight and labour.

In response, manufacturers increased selling prices at a strong pace to maintain healthy margins, the report said.

Despite these price adjustments, business confidence remains high. Manufacturers are optimistic about the year ahead, citing effective advertising, rising customer enquiries, and a supportive domestic market as key drivers of future growth.

Supporting this momentum, India’s overall industrial production registered a 2.7 per cent growth in April 2025, according to official data from the Ministry of Statistics which was released last month.

The manufacturing sector grew by 3.4 per cent during the month, with 16 out of 23 industry groups showing positive output, the data said on May 28.

–IANS

pk/na