India Manufacturing Growth Hits 17-Year High

The HSBC India Manufacturing PMI rose to 59.3 in August 2025 from 59.1 in July, but was revised lower from initial estimates of 59.8. This marks the fastest improvement in operating conditions in seventeen and a half years, with production growth accelerating to a nearly five-year high, supported by strong demand and better alignment of supply with orders. New orders also rose at the fastest pace in 57 months, driven by strong sales in intermediate, capital, and consumer goods. Input buying surged as firms rebuilt inventories, while employment rose for the 18th consecutive month, though at the slowest pace since November 2024. On prices, input costs increased moderately, and selling prices rose above trend. Finished goods inventories expanded for the first time in nine months, while capacity pressures remained subdued. Lastly, optimism for future output strengthened, offsetting softer export growth amid a 50% US tariff, with domestic demand supporting the sector.