India’s manufacturing sector continued to strengthen in October, with the S&P Global Manufacturing Purchasing Managers’ Index (PMI) rising to 59.2, up from 57.7 in September. The improvement reflects strong domestic demand, GST-driven relief, increased productivity, and greater integration of advanced technology.
HSBC’s Chief India Economist, Pranjul Bhandari, noted that the upbeat momentum was fuelled by simultaneous growth in output, new orders, and job creation. These factors, supported by solid end-user demand, signal continued resilience in India’s industrial economy.
The PMI reading—well above the neutral 50 threshold—indicates sustained expansion in the manufacturing sector. Domestic orders saw a notable rise, becoming the primary engine of growth, even as export demand softened to its lowest level of the year.
Manufacturers also ramped up input purchases, with inventory accumulation reaching its fastest pace since May 2023, underscoring confidence in future business prospects. Input cost inflation eased to an eight-month low, suggesting softer price pressures on raw materials and energy. However, output prices continued to rise modestly, with overall selling prices matching September’s twelve-year high, as companies passed on limited cost increases to consumers.
Employment in the sector remained stable for the twentieth consecutive month, highlighting steady hiring and sustained workforce demand. Firms attributed their optimism to ongoing GST reforms, capacity expansion plans, and consistent domestic consumption patterns that continue to drive industrial recovery.
Analysts believe this momentum positions India’s manufacturing industry for a strong performance in the coming quarters. The government’s policy support, combined with easing input costs and rising consumer demand, is expected to fuel further output growth and enhance production efficiency.
Overall, October’s data reaffirm India’s status as one of the fastest-growing manufacturing economies globally—anchored by business confidence, improved cost conditions, and robust demand fundamentals.
