At 59.3, manufacturing Purchasing Managers’ Index (PMI) rises to nearly 18-year high in August

India’s manufacturing sector recorded robust growth in August 2025, with the HSBC India Manufacturing Purchasing Managers’ Index (PMI), compiled by Standard and Poor’s (S&P) Global, rising to 59.3, its highest level in nearly 18 years. The strong performance was supported by a surge in domestic demand, which drove substantial increases in factory orders and production. The PMI has now remained in the expansion zone for the 50th consecutive month, signalling sustained momentum in the sector. Growth was particularly strong in intermediate goods, followed by capital goods and consumer goods, with companies also reporting improved alignment of supply with demand.
Economists noted that while international demand growth softened slightly due to tariff uncertainties in the United States (US), overall order inflows held up well, demonstrating the resilience of domestic demand. Companies secured fresh orders from clients across Asia, Europe, the Middle East, and the US, ensuring broad-based growth. Input costs rose moderately, with higher prices reported for steel, minerals, leather, and small electronic parts, though the rate of inflation remained below long-run averages. Selling prices, however, increased at a quicker pace, supported by strong demand. Job creation slowed compared with earlier months but continued at a historically solid pace. Analysts highlighted that manufacturers remain optimistic about future output, indicating sustained momentum in India’s manufacturing activity.

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