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India's Factory Growth Soars to 7-Month High as Demand Rebounds, PMI Shows
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Firstpost•01-10-2026, 11:54
India's Factory Growth Soars to 7-Month High as Demand Rebounds, PMI Shows
- •India's manufacturing sector experienced its fastest growth in seven months in September, driven by robust demand for new orders, output, and hiring.
- •The HSBC India Manufacturing Purchasing Managers’ Index (PMI) rose to 55.1 in September from 52.8 in August, indicating significant expansion.
- •New orders surged at their quickest pace since February, fueled by strong demand across electronic, food, pharmaceutical, and textile products, with export orders also accelerating.
- •Manufacturers increased hiring at the strongest rate since May, recovering from an August decline, and business confidence reached a four-month high.
- •Despite renewed cost pressures from higher input prices, manufacturers raised selling prices modestly, and the overall data signals renewed momentum in India's factory sector.
Key Questions Answered
The index rose to 55.1 in September from 52.8 in August as a strong recovery in demand boosted new orders, output, and hiring across the manufacturing sector. New orders grew at their fastest pace since February, driven by higher demand for electronic, food, pharmaceutical, and textile products.
Manufacturers reported stronger export demand from customers in Brazil, Europe, the United Arab Emirates, and the United States.
Retail inflation remained above the Reserve Bank of India’s 4% medium-term target for the third consecutive month in August due to higher energy and food costs, leading to expectations that the RBI will raise interest rates by 50 basis points this year to 5.75%.
