The Indian manufacturing sector has shown continued growth in October 2024, as reflected in the latest HSBC India Manufacturing Purchasing Managers Index (PMI) of 57.5, which is an increase from 56.5 in September. This represents a steady expansion in output, with both domestic and export markets contributing to the rise. The boost in demand for Indian manufactured goods is largely driven by significant growth in new orders and international sales. Notably, export orders have increased at their fastest pace since May 2022.
As India moves towards becoming a $10 trillion economy, foreign direct investment (FDI) into the manufacturing sector has surged, increasing by 69% over the past decade. This is in part due to the government’s policies that reduce dependency on imports and promote domestic production, with a notable decline in mobile phone imports.
