Boosted by strong new business growth, moderate pricing pressure, higher international sales, and improving supply-chain conditions, manufacturing activity in India increased further and reached a four-month high in April, according to an Economics Associate Director at Global Market Intelligence.
Due to stock-replenishment efforts, factory orders and output increased at the fastest rates in 2023, more employment was created, and companies increased their input purchases.
According to the Economics Associate Director at a Global Market, “Indian manufacturers have the potential to continue moving further. Along with seeing the largest increase in new business so far in 2023, capacity was increased through job creation, reduced input purchases, and record-high increases in pre-production inventories.
The increase in new orders made with manufacturers of products was the fastest since last December. According to panel members, publicity, strong demand, and favorable market circumstances, all contributed to the upturn.
Regarding pricing, although businesses reported increased operational expenses in April due to increases in the cost of fuel, metals, transportation, and some other raw commodities, the overall inflation rate remained below its long-term average after picking up since March.
Charge inflation also accelerated in April, hitting a three-month high and edging closer to its long-term average. Nevertheless, the survey found that 92% of companies left their fees unchanged since March, while only 6% increased them.
Due to the demand’s resilience, customer inquiries, orders still awaiting approval, and marketing efforts, Indian manufacturers are confident that output volumes will increase in the coming 12 months. Furthermore, since March, the overall outlook has become more optimistic.
According to the Economics Associate Director at Global Market Intelligence, “Manufacturers are certainly upbeat toward growth prospects, with optimism improving from March’s eight-month low on the back of contracts pending approval, rising client enquiries, marketing initiatives, and evidence of demand resilience.”