India’s manufacturing sector maintained strong momentum in August, with the HSBC India Manufacturing PMI climbing to 59.3, up from 59.1 in July. This marks the fastest improvement in operating conditions in 17-and-a-half years.
The acceleration was driven by rapid expansion in production volumes, with growth hitting its quickest pace in nearly five years. Survey participants cited better alignment of supply with demand and robust domestic orders as key factors.
New orders continued to grow strongly, broadly matching July’s pace, the fastest in 57 months. Demand strength was supported by advertising efforts and resilient domestic consumption, though export growth softened to a five-month low amid uncertainty over higher US tariffs on Indian goods.
Employment rose for the 18th consecutive month, reflecting manufacturers’ optimism about future output, while input purchases increased at the sharpest pace in 16 months.
Cost pressures remained moderate compared to historical trends, though selling prices rose at the highest rate in three months due to strong demand.
Overall, the data signals that India’s manufacturing industry is on a firm growth path, with companies displaying confidence in continued expansion despite external challenges.