India Factory Growth Stuck Near 4-Year Low on Iran Impact on Costs
By Reuters | 04 May, 2026

India Manufacturing Purchasing Managers' Index rose to 54.7 last month from March's 53.9, and was below the projection of 55.9.

India's manufacturing growth edged up slightly in April but remained stuck near a four-year low as weak demand and soaring input costs driven by the Middle East war weighed on activity, a survey showed.

• HSBC's final India Manufacturing Purchasing Managers' Index, compiled by S&P Global, rose to 54.7 last month from March's 53.9, but was lower than a preliminary estimate of 55.9.

• The index has remained above the 50-mark separating expansion from contraction for almost five years. Still, April's reading marked only a modest recovery from March's 45-month low.

• Production and new orders - a key gauge of demand - each rose at the second-slowest pace since mid-2022 as firms cited competition, the U.S.-Israel war with Iran and lower order approval.

• Cost burdens climbed to their highest since August 2022 as the war drove up prices for raw materials - especially fuel. Manufacturers lifted selling prices at the fastest pace in six months.

• Foreign demand provided a bright spot with export orders expanding at the fastest pace in seven months.

• Despite subdued overall sales, companies hired additional workers at the strongest pace in 10 months with firms citing expansion plans.

• Manufacturers also remained optimistic towards growth prospects and business sentiment reached its second-highest level since November 2024.

(Reporting by Anant ChandakEditing by Shri Navaratnam)