India’s manufacturing sector continues its strong growth streak, backed by rising industrial output and robust domestic demand. According to the latest S&P Global Manufacturing PMI report, the index climbed to 59.2 in October, up from 57.7 in September, indicating a solid expansion in factory activity. Any reading above 50 signifies growth.
The index is based on a survey of 400 companies and the findings highlight that employment in the manufacturing sector has grown for the 12th consecutive month. Firms reported steady hiring to meet rising demand and manage increasing workloads, though the pace of job creation remained moderate.
The report notes that stronger production, increased orders and sustained investment in technology, along with GST-driven efficiencies, continue to support manufacturing growth. New orders surged sharply, boosting output and purchasing activity, resulting in near-record expansion in input inventories. However, export growth slowed to a ten-month low.
Input costs saw only mild increases, but output prices rose as some manufacturers passed on higher expenses to customers.
HSBC’s Chief India Economist, Pranjul Bhandari, said resilient demand boosted production, orders and jobs. Looking ahead, manufacturers remain optimistic due to GST reforms, expanded capacity, strong demand expectations and anticipated clearance of pending contracts — signaling continued momentum for India’s manufacturing sector.
