November 5, 2025
NEW DELHI – The Manufacturing Purchasing Managers’ Index (PMI) spiked to 59.2 in October from 57.7 in September, indicating expansion in the manufacturing activity.
According to data compiled by S&P Global, the upturn was supported by strong domestic demand, goods and services tax (GST) relief measures, productivity gains, and higher technology investments.
The report also highlighted that the manufacturers increased their purchases of raw materials and semi-finished goods in October to support higher production and build inventories.
Purchasing activity rose at the fastest pace since May 2023, while holdings of raw materials and semi-finished goods expanded at the second-fastest rate since March 2005, behind only May 2023.
Job creation in the manufacturing sector continued for the 20th straight month in October, with the pace of hiring remaining moderate and broadly unchanged from September, the report highlighted.
S&P Global mentioned that the input cost inflation eased in October, with the latest increase being the weakest in eight months and well below the long-run average. However, despite easing cost pressures, output prices rose at the joint-highest rate in 12 years, matching September’s level.
“India’s manufacturing PMI accelerated to 59.2 in October, up from 57.7 during the month prior. Robust end-demand fuelled expansions in output, new orders, and job creation,” said Pranjul Bhandari, chief India economist at HSBC.
“Meanwhile, input prices moderated in October while average selling prices increased as some manufacturers passed on additional cost burdens to end-consumers,” Bhandari added.
At the beginning of the third fiscal quarter, the report said that new orders rose sharply, helped by stronger demand, more advertising, and the GST reform.
The pace of expansion was faster than in September, while growth in factory output also quickened. The expansion rate matched August’s level, which was one of the strongest in the past five years.