FX.co ★ India Manufacturing Growth Hits 17-Year High

In August 2025, the HSBC India Manufacturing PMI ascended to 59.3 from 59.1 in July, although it was revised from the preliminary estimate of 59.8. This represents the most rapid enhancement in operating conditions seen in seventeen and a half years. The acceleration in production growth reached its highest in nearly five years, fueled by robust demand and a more favorable alignment of supply with orders. New orders increased at the swiftest rate in 57 months, propelled by strong sales across intermediate, capital, and consumer goods sectors. Input purchasing saw a surge as companies aimed to rebuild their inventories, while employment rose for the 18th consecutive month, albeit at a slower pace than observed since November 2024. Regarding prices, input costs experienced moderate increases, with selling prices surpassing trend levels. Inventories of finished goods grew for the first time in nine months, and capacity pressures remained subdued. Optimism regarding future output was bolstered, counterbalancing softer export growth caused by a 50% US tariff, with robust domestic demand providing essential support to the sector.