India Manufacturing PMI October 2025: India’s manufacturing sector activity strengthened in October on the back of reduction in Goods and Services Tax (GST) rates, increase in productivity and technology investment. This information came to light in a monthly survey report on Monday.

The seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) rose to 59.2 in October from 57.7 in September. Due to which the situation in the area is indicating rapid improvement. In the language of Purchasing Managers Index (PMI), a number above 50 indicates expansion while a number below 50 indicates contraction.

HSBC economist Pranjul Bhandari

HSBC’s Chief India Economist Pranjul Bhandari said that India’s manufacturing PMI increased to 59.2 in October from 57.7 last month. Strong final demand boosted growth in production, new orders and job creation. On the price front, despite a modest and slow increase in the cost of raw materials, the inflation rate remained almost at a 12-year high in September. Giving further information, Bhandari said that the prices of raw materials softened in October, while the average selling prices increased. Because some manufacturers passed the burden of additional costs on to the end consumers.

Meanwhile, job creation continued for the 20th consecutive month in October. The rate of expansion remained moderate and remained roughly the same as in September. According to Bhandari, looking towards the future, the future business sentiment is strong due to positive expectations regarding GST reform and good demand. The HSBC India Manufacturing PMI has been prepared by S&P Global on the basis of responses to questionnaires sent to purchasing managers in a group of about 400 companies.

Manufacturers have intensified raw material purchasing in October. This will help in increasing production and also strengthen the reserves. Purchasing levels have increased at the fastest pace since May 2023, which shows that the manufacturer is fully confident about future demand.

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India’s private sector is moving fast. According to the HSBC Flash India Composite Purchasing Managers Index (PMI) released on Thursday, due to the boom in global demand and manufacturing activities, the country’s private sector rally in July. There is evidence that in the past more than a year, commercial activities in the private sector have increased as the scope of both manufacturing and service is increasing.

How much was manufacturing PMI in July?

In July, the manufacturing PMI index increased from 58.4 to 59.2, which is the highest level ever in the last 17 years. The credit for this strong performance can be directed for the boom in demand, more export order and continuous increase in production. Meanwhile, the services PMI stood at 59.8 in July, slightly less than 60.4 in June. Although the continuous expansion of the activities of the services sector is going on, the speed of growth has decreased slightly.

Chief India Economist Pranjul Bhandari at HSBC said, “India’s flash composite PMI remained strong at 60.7 in July. Sales, export audiences, output levels got more strength to its strong performance. The manufacturers of the country played a leading role in the field by registering a sharp extension against the services on these three standards. ”

Input cost edge, dull employment growth

The survey also indicated an increase in international orders for private sector companies in the country at the beginning of the second quarter of FY 26. July saw a significant increase in both input prices and output charges. Pranjul Bhandari further says, “Meanwhile, in July, the pressure of inflation is increasing with an increase in both input costs and output charges. Finally, the business confidence came to its lowest level since 2023, while the increase in employment was also slow. ”

However, despite this, companies remain optimistic about production next year. In particular, hiring in the service sector has accelerated, which indicates economic expansion as well as continuous employment generation.

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