India’s manufacturing and services activities tops global charts

India has emerged as the global leader in both manufacturing and services activity, according to the Purchasing Managers’ Index (PMI) data released by J.P. Morgan for April 2025. With a manufacturing PMI of 58.2 and a services PMI of 58.7, India is outpacing both developed and emerging markets, signalling robust economic growth across multiple sectors.

The PMI is a crucial indicator of economic health, with values above 50 signifying expansion. As per J.P. Morgan, India’s PMI figures in both sectors are the highest globally, reflecting strong demand and continued expansion in the country’s private sector.

India’s performance stands in stark contrast to other large economies. For example, China’s manufacturing PMI, tracked by both Markit and the National Bureau of Statistics (NBS), stood at 50.4 and 49, respectively, indicating only moderate growth or contraction. Similarly, China’s services PMI also lagged behind India, coming in at 50.7 (Markit) and 50.1 (NBS), compared to India’s 58.7, highlighting India’s significantly faster pace of growth.

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In other major economies, signs of sluggishness are evident. The US manufacturing PMI, as reported by ISM, was 48.7, signalling contraction, while its services PMI stood at 51.6, just above the expansion threshold. The Eurozone remains weak, with April’s manufacturing PMI at 49 and services PMI at 50.1, both signalling sluggish growth. The UK and France also showed concerning numbers, with manufacturing PMIs at 45.4 (UK) and 48.7 (France), alongside services PMIs below 50, pointing to contraction.

Comparative outlooks from other institutions

India’s resilience is further supported by forecasts from other major institutions. The International Monetary Fund (IMF) projects India’s GDP growth at 6.8 per cent for FY25, higher than any major economy, reinforcing J.P. Morgan’s confidence in India’s economic strength. Similarly, the World Bank expects India’s economy to continue its positive trajectory, with growth projected to remain above 6 per cent in the coming years. These forecasts underline India’s consistent growth performance, despite global challenges.

Global context and challenges

Though India's global performance remains high, it faces challenges in the form of India-Pakistan tensions and the ongoing US tariff dispute. These geopolitical factors affected the global markets and India’s external trade. However, as India continues to strengthen its position as a global manufacturing hub, particularly amid the US-China trade tensions, the country’s favourable position as an alternative to China for manufacturing and exports has garnered significant attention.