FX.co ★ India Manufacturing Growth Eases in September

The preliminary data indicates that the HSBC India Manufacturing PMI decreased to 58.5 in September 2025, down from August's 59.3, which marked a 17-and-a-half-year peak. Despite this slight decline, the index remained well above the neutral level of 50.0 and its long-term average of 54.2, indicating that the manufacturing sector continues to experience robust growth. New orders showed a significant increase and remained above the trend, although the growth rate has slowed compared to August. Several companies attributed this to favorable demand conditions, while some noted that competitive forces affected their order volumes. Employment in the sector continued to rise, though at a reduced pace, with only 3% of companies reporting new job creation. On the pricing front, input cost inflation accelerated in September, and output prices increased at the fastest rate in over 12-and-a-half years. Despite these pressures, firms maintained strong confidence in future output growth.