India manufacturing development picks up in October as home demand strengthens, PMI reveals

India’s manufacturing exercise gained momentum in October as home demand strengthened, offsetting a slowdown in export development, though enterprise optimism slipped from a seven-month excessive, a enterprise survey confirmed on Monday (November 3, 2025).

The HSBC India Manufacturing Purchasing Managers’ Index, compiled by S&P Global, rose to 59.2 in October from 57.7 in September, greater than a preliminary estimate of 58.4.

The 50.0 mark separates growth from contraction on a month-to-month foundation.

Output development accelerated to match the joint-strongest tempo in 5 years, equal to that seen in August. Manufacturers cited demand power, effectivity enhancements, new purchasers and know-how investments as components driving greater manufacturing.

But worldwide gross sales development weakened. New export orders elevated at their slowest fee in 10 months, although the rise remained substantial.

Despite enter value inflation easing to an eight-month low, output cost inflation remained at its highest degree in practically 12 years for the second consecutive month. Companies reported passing on greater freight and labour prices to prospects, whereas sturdy demand allowed them to take care of elevated costs.

“Robust end-demand fuelled expansions in output, new orders, and job creation. Meanwhile, enter costs moderated in October whereas common promoting costs elevated as some producers handed on extra value burdens to end-consumers,” mentioned Pranjul Bhandari, chief India economist at HSBC.

Employment rose for the twentieth straight month as companies employed to deal with elevated workloads however the tempo of job creation remained reasonable and just like September’s degree.

The future output sub-index gauging enterprise optimism slipped from its seven-month excessive in September however stayed sturdy.

“Looking forward, future enterprise sentiment is powerful attributable to optimistic expectations round GST (items and providers tax) reform and wholesome demand.” added Bhandari.