Amid Rahul Gandhi’s ‘Assemble In India’ Criticism, India's Manufacturing Sector Growth Hits 16-Month High In July

Even as Congress leader Rahul Gandhi continues to criticise the government’s manufacturing push as merely “Assemble in India,” the country’s factory output surged to a 16-month high in July, with the HSBC India Manufacturing PMI rising to 59.1, up from 58.4 in June.

According to a The Hindu report, the sharp uptick reflects strong growth in new orders and output, marking the best performance since March 2024.

Sales rose at their fastest pace in nearly five years, while production also posted a 15-month high.

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"India’s manufacturing PMI rose to 59.1 in July, up from 58.4 in June, reaching its highest level in 16 months due to strong momentum in new orders and output," said Pranjul Bhandari, Chief India Economist at HSBC.

The survey indicated that overall sales grew at their fastest pace in nearly five years, which in turn pushed production to a 15-month high, exceeding long-term trends.

Despite expectations of continued output growth over the next year, business confidence declined, hitting its lowest level in three years, reflecting concerns around inflation and rising competition.

Cost pressures also returned, with manufacturers reporting higher input prices for aluminium, leather, rubber, and steel, leading to an increase in output prices.

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