{"id":55471,"date":"2025-11-03T01:38:15","date_gmt":"2025-11-03T05:38:15","guid":{"rendered":"https:\/\/stockmarketwatch.com\/stock-market-news\/indias-manufacturing-sector-accelerates-in-october-driven-by-robust-domestic-demand\/55471\/"},"modified":"2025-11-03T01:38:15","modified_gmt":"2025-11-03T05:38:15","slug":"indias-manufacturing-sector-accelerates-in-october-driven-by-robust-domestic-demand","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/indias-manufacturing-sector-accelerates-in-october-driven-by-robust-domestic-demand\/55471\/","title":{"rendered":"India&#8217;s Manufacturing Sector Accelerates in October, Driven by Robust Domestic Demand"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>India&#39;s HSBC Manufacturing PMI surged to 59.2 in October 2025, up from 57.7 in September, indicating a significant acceleration in the manufacturing sector.<\/strong><\/li>\n<li><strong>The strong performance was primarily fueled by robust domestic demand, with new orders increasing at a sharper pace, while export growth slowed to a ten-month low.<\/strong><\/li>\n<li><strong>Manufacturing output growth matched its joint-strongest rate in five years, showcasing sustained expansion in the sector.<\/strong><\/li>\n<li><strong>Despite input cost inflation easing to an eight-month low, output price inflation remained at a near 12-year high, reflecting manufacturers&#39; ability to pass on costs due to strong demand.<\/strong><\/li>\n<li><strong>Employment in the manufacturing sector continued its upward trend, marking the twentieth consecutive month of job creation.<\/strong><\/li>\n<\/ul>\n<p>India&#39;s manufacturing sector demonstrated significant momentum in October, with the <strong>HSBC India Manufacturing Purchasing Managers&#39; Index (PMI)<\/strong> climbing to <strong>59.2<\/strong>. This figure represents a notable increase from September&#39;s <strong>57.7<\/strong> and surpassed the preliminary estimate of <strong>58.4<\/strong>, signaling a robust expansion in operating conditions. The <strong>50.0<\/strong> mark separates expansion from contraction on a monthly basis, highlighting the sector&#39;s strong growth trajectory.<\/p>\n<p>The acceleration in manufacturing activity was predominantly driven by <strong>strong domestic demand<\/strong>. Companies reported a sharper increase in new orders, attributing this growth to effective advertising efforts, sustained robust demand, and the positive impact of Goods and Services Tax (GST) reforms. This surge in domestic sales helped offset a slowdown in international demand.<\/p>\n<p>Manufacturing output growth in October matched its <em>joint-strongest pace in five years<\/em>, a level last observed in August. Manufacturers cited factors such as <em>demand strength, efficiency improvements, acquisition of new clients, and technology investments<\/em> as key contributors to the heightened production.<\/p>\n<p>Conversely, new export orders experienced their <em>slowest growth in ten months<\/em>, although the increase remained substantial. This moderation in international sales growth was partly attributed to <strong>US tariffs<\/strong>, underscoring the critical role of domestic consumption in driving the overall expansion.<\/p>\n<p>On the pricing front, input cost inflation eased to an <em>eight-month low<\/em> in October. However, output price inflation persisted at a <em>joint 12-year high<\/em> for the second consecutive month, matching September&#39;s level. Manufacturers were able to pass on higher freight and labor costs to customers, supported by the prevailing strong demand conditions.<\/p>\n<p>Employment in the manufacturing sector continued to rise for the <strong>twentieth consecutive month<\/strong>, with the pace of job creation remaining moderate and consistent with September&#39;s levels. Looking ahead, manufacturers maintain a <em>positive outlook<\/em>, buoyed by expectations of further gains from GST rate cuts, expanded production capacities, and ongoing marketing initiatives. Business optimism, though slightly down from a seven-month high in September, remains robust.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways India&#39;s HSBC Manufacturing PMI surged to 59.2 in October 2025, up from 57.7 in September, indicating a significant 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