India manufacturing PMI reaches 59.2 in July, its highest in nearly 17.5 years

NEW DELHI: The HSBC Flash India Manufacturing PMI reached 59.2 in July 2025, its highest level in nearly 17.5 years, PMI data released by S&P Global showed. This surge, up from 58.4 in June, signals robust growth in the manufacturing sector, driven by strong domestic and global demand.

Composite PMI reached 60.7, the fastest upturn in over a year, driven by buoyant demand, technological investments, and expanded capacities. There is a firm pick-up in employment, especially in the service sector, suggesting healthy job creation accompanies the expansion of both India’s manufacturing and service sectors.

Indian companies remained optimistic about output growth over the next 12-month and monitored companies attributed growth to buoyant demand, investment in technology and expanded capacities. Goods producers in India registered a faster increase in output than service providers, as the pace of expansion picked up to the strongest since April 2024, S&P Global’s PMI data showed.

There was a softer upturn in services activity during July, though growth remained sharp by historical standards, the PMI data showed. Operating conditions across India’s private sector continued to improve in July, with the latest HSBC ‘flash’ PMI data showing sharp expansions in total sales, export orders and output levels.

On the price front, there were quicker increases in both input costs and output charges. “While business confidence remained positive, it retreated to its lowest mark in close to two-and-a-half years as some panelists were concerned about competition and inflationary pressures. Subsequently, job creation eased to the weakest rate in 15 months”, the PMI report said.

At 60.7 in July, the HSBC Flash India Composite* Output Index — a seasonally adjusted index that measures the month-on-month change in the combined output of India’s manufacturing and service sectors — was little-changed from June’s final print of 61.0 and therefore signalled another substantial rate of growth. Moreover, the headline figure remained well above its long-run average of 54.8.

Pranjul Bhandari, chief India economist at HSBC, said, “India’s flash composite PMI remained healthy in July at 60.7. The strong performance was bolstered by growth in total sales, export orders, and output levels. Indian manufacturers led the way, recording faster rates of expansion than services for all of the three aforementioned metrics. Meanwhile, inflationary pressures continue to heat up as both input costs and output charges rose in July. Finally, business confidence fell to its lowest mark since March 2023, while employment growth moderated to its weakest pace in 15 months”.

The HSBC Flash India PMI® is compiled by S&P Global from responses to questionnaires sent to survey panels of around 400 manufacturers and 400 service providers. The panels are each stratified by detailed sector and company workforce size, based on contributions to GDP. (ANI)