Fueled by rising international demand and growing sales, India's manufacturing sector experienced a significant acceleration in its long-running expansion during October, as reported by S&P Global. The purchasing manager's index (PMI) for India's manufacturing sector increased to a seasonally adjusted 57.5 in October, up from 56.5 in September.
This figure remains comfortably above the critical 50-point threshold, indicating ongoing growth rather than contraction. This marks the continuous expansion of India's manufacturing PMI since January 2021. Manufacturing managers reported robust demand for goods, supported by anecdotal evidence that the launch of new products and effective marketing strategies have contributed positively to sales performance. Notably, export orders witnessed a rise in October, particularly regarding new contracts from regions such as Asia, Europe, Latin America, and the United States. Industrial managers emphasized a strong demand for investment goods—capital products used in commercial contexts rather than for direct consumer use. In October, factory managers added to their payrolls while facing rising input costs, which subsequently led them to increase charges for customers.
"Input and output prices are both increasing as a result of persistent inflationary pressures in materials, labor, and transportation costs," one manager explained. Furthermore, India's factory sector managers expressed optimism about their projections for the next 12 months. Business confidence remains high, fueled by expectations of sustained strong consumer demand, new product launches, and upcoming sales approvals.
The India manufacturing PMI was compiled by S&P Global based on survey responses from a carefully selected panel of 400 manufacturers, collected from October 9 to October 25..