News Brief
India's Manufacturing Sector Surges: PMI Reaches 57.5 In October Driven By Strong Demand And Export Growth
India's Manufacturing PMI inched up to 57.5 from 56.5 in September 2024. (Representative image)
India’s manufacturing sector showed a notable performance boost at the start of the third fiscal quarter, ending a three-month deceleration streak that culminated in September's eight-month low.
According to the HSBC India Manufacturing Purchasing Managers' Index (PMI), activity in October improved to 57.5 from 56.5 in September, marking a steady rebound.
The upswing in manufacturing output was driven by strong demand for Indian goods, both domestically and internationally.
Fresh export orders rebounded significantly in October after experiencing their slowest rise in 18 months in September. New business deals across Asia, Europe, Latin America, and the US fueled this recovery.
Production volumes rose sharply, led by consumer and investment goods. Firms attributed the growth to increased demand, a positive sales outlook, and favorable market conditions.
The sector’s hiring also saw an uptick from September, with about 10% of surveyed firms expanding their workforce, while 1% reduced staff.
Business sentiment strengthened from September’s low, with about 23% of firms expecting growth over the coming year, while the rest anticipated stable conditions.
According to Pranjul Bhandari, Chief India Economist at HSBC, "To start the third fiscal quarter, business confidence is also very high due to expectations of continued strong consumer demand, new product releases, and sales pending approval.”
The PMI survey covers over 400 industries. A PMI reading above 50 signals activity expansion, reinforcing the positive outlook for India’s manufacturing sector.
