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India's Factory Growth Hits 7-Month High on Surging Demand, Boosts Hiring
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News18•01-10-2026, 11:14
India's Factory Growth Hits 7-Month High on Surging Demand, Boosts Hiring
- •India's manufacturing sector saw its fastest growth in seven months in September, ending a three-month slowdown due to robust demand.
- •The HSBC India Manufacturing PMI jumped to 55.1 in September, the highest reading since February, indicating strong expansion.
- •New orders surged, driven by increased demand for electronic, food, pharmaceutical, and textile products, with export orders also accelerating.
- •Rising demand led to a recovery in hiring, with employment expanding at its strongest rate since May, reversing an August decline.
- •Business confidence reached a four-month high, though input costs rose due to higher prices for electronic components, pharmaceuticals, and steel.
Key Questions Answered
India's manufacturing sector expanded sharply in September due to robust demand, which drove the fastest growth in factory activity in seven months, revived hiring, and lifted business confidence.
The HSBC India Manufacturing Purchasing Managers’ Index jumped to 55.1 in September from a five-year low of 52.8 in August, marking its highest reading since February.
To tackle rising inflation that has stayed above its 4% target, the Reserve Bank of India is expected to raise interest rates by a total of 50 basis points this year to reach 5.75%.
