Business EconomyPosted at: Oct 3 2025 1:28PM


India’s manufacturing industry growing with mild loss of momentum: HSBC Survey

New Delhi, Oct 3 (UNI) The HSBC PMI data for September highlighted continued growth across India’s manufacturing industry, albeit with a mild loss of momentum, a monthly survey of HSBC said.
“New orders, output and input buying all rose at the slowest rate since May, while job creation retreated to a one-year low. Still, companies were strongly confident regarding the outlook for production, with changes in GST (goods and services tax) rates boosting optimism,” said HSBC.
“At 57.7 in September, down from 59.3 in August, the seasonally adjusted HSBC India Manufacturing Purchasing Manager’s Index (PMI)--a single-figure indicator of sector performance–– pointed to the weakest improvement in the health of the sector since May. That said, registering comfortably above the neutral mark of 50.0, the latest reading was indicative of a marked rate of expansion,” it added.
The survey noted that there was a pick-up in growth of international orders at the end of the second fiscal quarter, as Indian manufacturers welcomed improvements in demand from Asia, Europe, America and the Middle East.
Sharing opinion on the September report, Pranjul Bhandari, Chief India Economist at HSBC, said, “ The September headline index softened, but it remained well above the long-term average. New export orders increased at a faster rate in September, indicating demand outside the US might be offsetting any decline in demand from the US as a result of tariffs. Business confidence, as indicated by expectations for future output, showed a big jump in September, potentially reflecting optimism about the boost in demand from the cuts in goods and services tax (GST), although the US tariff remains a strong headwind to the economy.”
HSBC also pointed towards positive future prospects and said “Indian companies continued to signal upbeat forecasts for production in the coming 12 months. Moreover, the overall level of confidence rose to a seven-month high.Concurrently, buying levels rose further at the end of the second fiscal quarter. Although the slowest in four months, the rate of expansion was sharp by historical standards.”
“Indian goods producers also took on extra staff in September, but the rate of job creation was modest and the slowest in a year. In fact, only 2pc of companies indicated headcount Growth. Despite weak job creation relative to sales growth, outstanding business volumes increased only marginally in September. The pace of accumulation was below that seen in August and its long-run average,” it said.
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