October 16, 2026 06:07 am (IST)
Follow us:
PMI Data
India’s manufacturing growth accelerates in October amid stronger domestic demand
India’s manufacturing sector gathered pace in October, buoyed by resilient domestic demand that offset a slowdown in export growth, though business optimism eased slightly from a seven-month high, according to a business survey released Monday.
The HSBC India Manufacturing Purchasing Managers’ Index (PMI), compiled by S&P Global, climbed to 59.2 in October from 57.7 in September, surpassing the flash estimate of 58.4.
A reading above 50 indicates expansion in manufacturing activity.
Production growth strengthened to match the fastest rate in five years, equal to that recorded in August.
Production growth strengthened to match the fastest rate in five years, equal to that recorded in August.
Manufacturers credited the acceleration to strong consumer demand, improved operational efficiency, new client acquisitions, and technology investments.
However, export growth showed signs of strain.
New international orders rose at the slowest pace in ten months, though the overall increase remained solid.
While input cost inflation eased to an eight-month low, selling prices stayed at a nearly 12-year high for the second month in a row.
While input cost inflation eased to an eight-month low, selling prices stayed at a nearly 12-year high for the second month in a row.
Firms cited higher freight and labour expenses, which were partly passed on to consumers, as strong demand continued to sustain elevated price levels.
“Robust end-demand supported expansions in output, new orders, and employment,” said Pranjul Bhandari, Chief India Economist at HSBC.
“Robust end-demand supported expansions in output, new orders, and employment,” said Pranjul Bhandari, Chief India Economist at HSBC.
“At the same time, input prices moderated in October, while some firms raised selling prices to offset lingering cost pressures.”
Employment in the manufacturing sector grew for the 20th consecutive month, as companies expanded their workforce to meet higher workloads, though the pace of hiring remained steady compared to September.
The future output sub-index, which tracks business confidence, dipped slightly from September’s seven-month high but remained firmly positive.
“Looking ahead, sentiment remains upbeat, supported by optimism around GST reforms and expectations of sustained demand momentum,” Bhandari added.
Support Our Journalism
We cannot do without you.. your contribution supports unbiased journalism
IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.
Support objective journalism for a small contribution.
Latest Headlines
12 nations turn to Bengal: ICC hosts diplomats in Kolkata to explore trade and investment opportunities
Thu, Oct 15 2026
Hyundai announces $15.5 billion India investment plan through 2032: Here's what's coming
Wed, Oct 14 2026
Modi, Anita Anand discuss trade, defence and energy as India-Canada ties gain momentum
Wed, Oct 14 2026
Government approves Fairfax Financial as strategic buyer for 60.72% stake in IDBI Bank
Wed, Oct 14 2026
How to choose the best personal loan app: Features that actually matteratures that actually matter
Wed, Oct 14 2026
India's wholesale inflation surges to 11.39% in September: Here's what drove the jump
Wed, Oct 14 2026
Sitharaman to meet IMF Chief, Global Finance Ministers in Bangkok: Here’s what to expect
Wed, Oct 14 2026
No jobs, no future? UNDP warns 800 million young people are at risk
Wed, Oct 14 2026