The increase was supported by growth in new orders and output during the month.

India’s manufacturing activity improved slightly in April, although the pace of expansion remained relatively moderate compared to earlier periods, according to the latest survey data.

The HSBC India Manufacturing PMI, compiled by S&P Global, rose to 54.7 in April from 53.9 in March. A reading above 50 signals expansion in the sector.

The increase was supported by growth in new orders and output during the month. Survey participants noted that stronger demand and marketing efforts contributed to higher sales, though competitive conditions, the West Asia situation and delays in client approvals affected the overall pace of growth.

Cost pressures remained elevated, with companies reporting increases in input prices across several categories including fuel, chemicals, metals and other materials. Output prices were also raised, marking the fastest increase in recent months.

The survey indicated that new export orders expanded at a quicker pace, reaching a seven-month high, with firms reporting improved demand from multiple international markets.

On the employment front, manufacturers added staff at a stronger pace, with hiring activity reaching its highest level in 10 months despite a slight rise in pending work.

Looking ahead, firms remained optimistic about future output, supported by expectations of improved demand conditions and approvals for pending projects.