India’s manufacturing sector demonstrated a notable recovery at the start of the third quarter of the financial year, as the HSBC final India Manufacturing Purchasing Managers’ Index (PMI) rose to 57.5 in October, up from an eight-month low of 56.5 in September. This improvement was attributed to a stronger influx of new orders and international sales, with companies reporting better sales performance driven by new product launches and effective marketing strategies.
Significantly, new export orders experienced considerable growth after a modest increase in September, propelled by demand from regions such as Asia, Europe, and the US.
The survey indicated that production volumes increased, especially in consumer and investment goods, thanks to favorable market conditions and robust sales pipelines. Additionally, employment in the manufacturing sector grew, with approximately 10% of surveyed firms hiring more staff, resulting in a decrease in backlogs for the first time in over a year.
However, inflationary pressures continued, as input prices surged to a three-month high due to rising costs in materials, labor, and transportation. Output prices also saw a significant increase, highlighting ongoing inflation trends within the sector.
