Mfg PMI rebounds, risks persist

After falling to a 14-month low of 56.3 in February, the seasonally adjusted HSBC India Manufacturing PMI rebounded to 58.1 in March, marking its highest level in eight months.

- Harsha Jethmalani

After falling to a 14-month low of 56.3 in February, the seasonally adjusted HSBC India Manufacturing PMI rebounded to 58.1 in March, marking its highest level in eight months. A reading above 50 signals expansion. The surge was driven by the PMI's largest sub-component—the New Orders Index—as total sales in March expanded at their fastest pace since July 2024. Companies cited strong customer interest, favorable demand conditions, and effective marketing initiatives, according to the PMI survey report.

Firms are expected to have ramped up production to meet year-end targets, which likely boosted volumes. But celebrations may be premature as US President Donald Trump is set to announce a swathe of tariffs on 2 April, aimed at reducing America's reliance on foreign goods—escalating global trade tensions. He has already imposed tariffs on aluminum and steel. The PMI survey reflected this concern, showing subdued international orders.