HSBC’s India Manufacturing PMI jumped to 55.1 in September from 52.8 in August, eclipsing the 55.7 estimate and marking the fastest rise since February.
New orders surged at the quickest pace in five months, driven by electronics, food, pharma and textiles, signalling a sharp uptick in domestic demand.
Export orders accelerated too, with clients in Brazil, Europe, the UAE and the US pushing higher shipments, as firms rebuilt inventories to meet anticipated sales.
Input cost inflation ticked up, especially electronics and steel, yet price‑inflation remained below trend; the RBI is on track to raise rates by 50 basis points to 5.75% this year.
With manufacturing confidence at a four‑month high, investors eye the sector’s rally, and analysts expect the PMI to stay above 50 in the next quarter if demand holds.