India’s manufacturing growth accelerates in October amid strong domestic demand: PMI data

New Delhi — India’s manufacturing sector recorded a sharp expansion in October, buoyed by strong domestic demand, productivity gains, and increased investments in technology, according to the latest HSBC India Manufacturing Purchasing Managers’ Index (PMI) data compiled by S&P Global.

The PMI rose to 59.2 in October, up from 57.7 in September, signalling a faster pace of growth in factory activity at the start of the third financial quarter. The improvement was driven by a rise in new orders and production, supported by enhanced advertising and the rollout of GST 2.0 reforms, the report said.

The pace of expansion matched the robust levels seen in August — among the strongest in the past five years. A PMI reading above 50 indicates expansion, while one below 50 signals contraction; a reading of 50 denotes no change.

“Manufacturing activity gained momentum in October, reflecting resilient end-demand and robust growth in output, new orders, and employment,” said Pranjul Bhandari, Chief India Economist at HSBC.

While input cost inflation eased to an eight-month low, manufacturers continued to raise selling prices as they passed on higher freight and labour costs to consumers. Output charge inflation remained at its highest level in 12 years for the second consecutive month.

The report also noted that domestic sales growth outpaced export orders, which grew at a slower rate despite some improvement in overseas demand. Employment expanded for the 20th consecutive month, with hiring levels broadly consistent with those seen in September.

Manufacturers expressed strong optimism about future business prospects, crediting GST reforms, capacity expansion, and enhanced marketing initiatives as key factors driving confidence.

With inputs from IANS