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India’s manufacturing PMI accelerates to 59.2 in October
Nov-03-2025

India's manufacturing industry exhibited more strength in the month of October, buoyed by GST (Goods and Services Tax) relief, productivity gains and tech investment. Besides, a faster increase in new orders boosted growth of output and buying levels. According to the survey report, the seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) surged to 59.2 in October from 57.7 in September, indicating a quicker improvement in the health of the sector.

The survey report noted that new orders increased further at the start of the third fiscal quarter, with companies attributing growth to advertising, buoyant demand and the GST reform. Moreover, the pace of expansion was sharp and stronger than that recorded in September. Similarly, growth of output quickened from the previous month. Matching that seen in August, the rate of expansion was the joint-best in five years.

As per the report, the pick-up in sales growth mainly stemmed from the domestic market, as new export orders increased at a softer rate. The latest improvement in international demand for Indian goods was marked, though the least pronounced in the calendar year-to-date. Manufacturers continued to purchase additional raw materials and semi-finished items in October, to supplement production and add to their inventories. Notably, buying levels expanded at the fastest pace since May 2023.

On the inflation front, there was a modest and softer increase in input costs, but the rate of charge inflation matched September's near 12-year high. Further, job creation entered its twentieth consecutive month in October. The rate of expansion was moderate and broadly similar to September. Capacity pressures among Indian manufacturers remained mild, as signalled by another slight rise in outstanding business volumes. Demand strength was the main determinant of rising backlogs.


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