Is India’s Manufacturing PMI Surging to a Two-Month High of 58.4 in October?
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Synopsis
India's manufacturing sector is on the rise, with the PMI soaring to a two-month high of 58.4, signaling robust domestic demand and improving business conditions. This positive trend comes amid GST rate cuts that are aiding growth, but challenges from U.S. tariffs still loom.
Key Takeaways
- Manufacturing PMI reached a two-month high of 58.4.
- Strong domestic demand is fueling growth.
- GST rate cuts are positively impacting the manufacturing sector.
- Challenges from U.S. tariffs continue to affect exports.
- Overall economic expansion is still observed.
New Delhi, Oct 24 (NationPress) India’s manufacturing sector has shown a remarkable resurgence in October, as the HSBC Flash India Manufacturing Purchasing Managers’ Index (PMI) climbed to a two-month peak of 58.4, up from 57.7 in September, according to a report released on Friday.
The statistics compiled by S&P Global reveal that the manufacturing domain is expanding steadily, fueled by robust domestic demand and diminishing cost pressures.
This uptick in the manufacturing PMI signifies better business conditions, driven by an influx of new orders, enhanced production, and stable employment rates.
HSBC’s Chief India Economist, Pranjul Bhandari, noted that the recent cuts to GST rates have played a crucial role in stimulating domestic demand while managing input costs effectively.
Furthermore, she emphasized that both new orders and output remain above the averages recorded between January and July.
“The HSBC Flash Manufacturing PMI has seen a slight increase, likely due to the GST rate reductions that are bolstering domestic demand and alleviating cost pressures,” Bhandari remarked.
Nevertheless, challenges related to exports remain, primarily due to U.S. tariffs that continue to negatively impact new export orders and future business outlook.
“While new orders and output exceed the January–July averages, the US tariffs are still a significant drag on new export orders and optimism, which are below the January–July averages,” she added.
Simultaneously, the HSBC Flash India Composite Output Index, which assesses the combined performance of manufacturing and services sectors, dropped to 59.9 in October from 61.0 in September.
Despite this decline, the seasonally adjusted index remains significantly above the neutral 50-mark, indicating ongoing economic growth, albeit at a slower rate.
Experts contend that this strong rebound in manufacturing reflects the ongoing resilience of domestic demand and industrial activity as we approach the final quarter of the year.
Point of View
It is essential to recognize that the recent surge in India's manufacturing PMI reflects not only a recovery but also the resilience of domestic demand. Despite ongoing challenges from international trade dynamics, the overall outlook remains positive as we advance into the final quarter of the year.
NationPress
24/10/2025
Frequently Asked Questions
What is the current manufacturing PMI for India?
The current manufacturing PMI for India stands at 58.4, marking a two-month high in October.
What factors are contributing to the rise in India's PMI?
Key factors include robust domestic demand, higher new orders, increased production, and recent GST rate cuts that have alleviated cost pressures.
Are there any challenges faced by India's manufacturing sector?
Yes, challenges persist due to U.S. tariffs affecting new export orders and overall business optimism.
What does the PMI indicate about the economy?
A PMI above 50 indicates economic expansion; India's PMI of 58.4 suggests strong growth in the manufacturing sector.
What are the expectations for the manufacturing sector moving forward?
Experts anticipate continued resilience in domestic demand and industrial activity, despite external challenges as we head into the final quarter.
