Manufacturing sector booms due to GST cuts and technology investment, PMI breaks record.

India Manufacturing PMI October 2025: India's manufacturing sector activity strengthened in October, driven by a reduction in Goods and Services Tax (GST) rates, increased productivity, and technology investment. This information was revealed in a monthly survey report on Monday.

The seasonally adjusted HSBC India Manufacturing Purchasing Managers' Index (PMI) rose from 57.7 in September to 59.2 in October, indicating a rapid improvement in the sector's situation. In Purchasing Managers' Index (PMI) parlance, a reading above 50 indicates expansion, while a reading below 50 indicates contraction.

HSBC Economist Pranjul Bhandari

HSBC Chief India Economist Pranjul Bhandari said that India's manufacturing PMI rose to 59.2 in October from 57.7 the previous month. Strong final demand boosted growth in production, new orders, and job creation. On the price front, despite a modest and slow increase in raw material costs, inflation remained at a near 12-year high in September. Bhandari further stated that raw material prices softened in October, while average selling prices increased as some manufacturers passed on additional costs to end consumers.

Meanwhile, job creation continued for the 20th consecutive month in October. The rate of expansion remained moderate and broadly similar to September. Looking ahead, Bhandari said that positive expectations regarding GST reform and healthy demand strengthen future business sentiment. The HSBC India Manufacturing PMI is compiled by S&P Global based on responses to questionnaires sent to purchasing managers at a group of nearly 400 companies.

Manufacturers accelerated purchases of raw materials in October to help boost production and strengthen inventories. Purchase levels rose at the fastest pace since May 2023, indicating increased confidence in future demand.