India Manufacturing PMI Hits 17.5-Year High on Production, Jobs Surge

India's manufacturing sector reached a 17.5-year high in August, with the HSBC India Manufacturing Purchasing Managers' Index (PMI) rising to 59.3 from 59.1 in July, marking the fastest improvement in operating conditions since 2008. This growth was driven by a rapid expansion in production volumes, the quickest in nearly five years, supported by strong domestic demand and better alignment of supply with demand. New orders increased at a pace comparable to July, the fastest in 57 months, aided by successful advertising campaigns and resilient domestic consumption. Employment increased for the 18th consecutive month, while input purchases rose sharply as companies stocked up amid positive outlooks. Although international orders grew at a slower pace, demand from global markets including Asia, Europe, the Middle East, and the US remained strong. Cost pressures were moderate, but selling prices rose due to strong demand, signaling continued confidence in the manufacturing sector despite external challenges such as higher US tariffs on Indian goods.