New Delhi, Feb 3 (PTI) India's manufacturing sector growth started the year 2025 on a strong footing and touched a six-month high in January, fuelled by the steepest upturn in exports in nearly 14 years, a monthly survey said on Monday.

The seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) rose from December's one-year low of 56.4 to 57.7 in January supported by the fastest upturn in new export orders since February 2011.

In PMI parlance, a print above 50 means expansion, while a score below 50 denotes contraction.

"India's final manufacturing PMI marked a six-month high in January. Domestic and export demand were both strong, supporting new orders growth," said Pranjul Bhandari, Chief India Economist at HSBC.

Goods producers attributed the substantial increase in new orders to better domestic demand and a pick-up in international sales.

Subsequently, manufacturers in India continued to scale up production volumes. The latest increase was substantial and the fastest since October 2024.

Going forward, companies turned more optimistic about output prospects, with nearly 32 per cent of firms forecasting growth and just 1 per cent expecting a reduction.

According to panel members, buoyant underlying demand, better customer relations, favourable economic conditions and marketing efforts all bode well for growth prospects.

Robust sales gains and upbeat forecasts prompted companies to recruit additional workers at the start of the fourth quarter of this fiscal year.

"The employment PMI suggested robust job creation in the manufacturing industry, as the index increased to its highest level since the series was created. Input cost inflation eased for a second month, relieving pressure on manufacturers to raise final output prices," Bhandari noted.

On the price front, cost pressures retreated to their weakest in 11 months, but selling prices rose solidly amid buoyant demand.

The survey further noted that capacity pressures among manufacturers in India remained mild. Underlying data showed that strong job creation in recent months enabled companies to stay on top of their workloads, the survey said.

The HSBC India Manufacturing PMI is compiled by S&P Global from responses to questionnaires sent to purchasing managers in a panel of around 400 manufacturers. PTI DRR DR

Manufacturing growth strengthened as export-led demand and higher output spurred hiring and optimistic producer forecasts. India's manufacturing activity expanded at the start of 2025 as a steep upturn in new export orders and robust domestic demand drove the HSBC India Manufacturing PMI higher, prompting substantial production increases and stronger business sentiment. Firms reported increased hiring to manage workloads, while input cost inflation eased for a second month even as selling prices rose amid buoyant demand; capacity pressures remained mild. The PMI is compiled from a panel survey of purchasing managers covering around 400 manufacturers.