India’s manufacturing sector regains momentum with Oct PMI surge

India's manufacturing sector rebounded in October, showing significant growth after a three-month period of slowing momentum. According to a recent survey released on Monday, the Manufacturing Purchasing Managers’ Index (PMI) for India, compiled by S&P Global, rose to 57.5 from September's eight-month low of 56.5, driven by strong increases in new orders and rising international demand. Buoyed by a surge in both domestic and international orders, the sector’s performance was bolstered by rising demand, which in turn contributed to increased job creation and a positive business outlook.
The increase in PMI reflects a robust growth in new orders, supported by rising demand for Indian goods. Notably, October saw a resurgence in export orders following a sluggish September, with gains in new contracts reported from regions such as Asia, Europe, Latin America, and the United States. The demand surge was further supported by manufacturers' successful marketing initiatives and new product launches, which helped boost sales performance across the sector.
While the sector faces rising inflationary pressures, with both input and output prices climbing due to higher material, labor, and transportation costs, manufacturers remain optimistic. Higher business expenses have been observed as producers take on additional staff to meet demand. The survey indicates that roughly one in ten respondents reported an increase in employment at the start of the third fiscal quarter, signaling confidence in continued growth.

(Business Correspondent)