India’s Manufacturers Report: India’s manufacturing sector returned to growth momentum in October 2025, registering a Purchasing Managers’ Index (PMI) of 59.2, up from 57.7 in September, according to the HSBC/S&P Global survey. This marks the fastest pace of expansion in around five years. The rebound is noteworthy especially given the concurrent deceleration in the services sector.
Key Highlights
- The manufacturing PMI rose to 59.2 in October, the highest in five years.
- Growth was driven primarily by strong domestic demand, GST relief measures, increased technology investment and productivity gains.
- However, export order growth slowed, registering its weakest pace in around ten months, although still expanding.
- Input cost inflation eased to the weakest rate in eight months, providing some relief to manufacturers.
- Output prices remained elevated, with firms passing on freight and labour costs to customers.
- Employment in manufacturing continued to expand for the 20th consecutive month, though the pace was moderate and broadly unchanged from September.
Why Manufacturing Is Accelerating
Domestic Demand & Festive Season
With the festival season underway and consumer sentiment high, domestic orders surged. Manufacturers ramped up production, increased raw‑material purchases and built inventories.
GST Relief & Policy Support
Relief in goods and services tax (GST) burdens and other policy incentives offered manufacturers cost and compliance advantages, helping drive growth.
Technology Adoption & Efficiency Gains
Manufacturers invested in upgrading processes, automation and supply‑chain integration, boosting productivity and allowing them to scale output.
The Services Sector: Slowing Meanwhile
In contrast to manufacturing, the services sector in India showed signs of moderation. The services PMI eased to 58.9 in October — its weakest in five months — weighed down by weather disruptions, heavy rain and rising competition.
This divergence suggests a growth shift in the economy from services to goods‑dominated activity, at least temporarily.
What This Means for the Economy
- The strong manufacturing performance signals resilience in India’s industrial base and supports the “Make in India”‑style agenda.
- A manufacturing upswing may lead to improved employment, greater investments, and enhanced export potential (if export segment recovers).
- However, the slower services growth cautions that broad‑based economic momentum is needed — services represent over 50% of GDP.
- Low input‑cost inflation paired with elevated output prices might raise concerns about margin pressures or consumer inflation further down the line.
Risks & What to Watch
- If export demand remains weak or global headwinds intensify, the manufacturing expansion may lose steam.
- Elevated output prices, if passed on to consumers, could feed into inflation and affect domestic demand.
- The services slowdown may impact sectors such as IT, professional services and hospitality, which are key employment generators.
- Policymakers should monitor whether this growth is sustainable or driven primarily by short‑term factors (festive demand, policy incentives).
Grounded Growth & Inner Value
According to the teachings of Sant Rampal Ji Maharaj, material growth should be balanced with spiritual awareness and ethical conduct:
“True progress comes when external growth‑metrics align with inner values of honesty, service and righteousness.”
In the context of India’s manufacturing boom, this means that while output and demand rise, it is equally important that growth benefits workers fairly, supports sustainability, and aligns with the larger purpose of society.
Call to Action
Seizing the Manufacturing Moment
For Businesses, Policymakers & Workers
- Businesses: Invest in capacity, digitalisation and supply‑chain resilience to leverage this upturn.
- Policymakers: Support export growth, enhance infrastructure and ensure services sector revival so growth is balanced.
- Workers & Youth: Explore opportunities in manufacturing, upskilling in automation, production and high‑tech manufacturing roles.
FAQs: Strong Growth in Manufacturing Sector
Q1. What does a PMI of 59.2 mean?
A PMI above 50 indicates expansion. A reading of 59.2 suggests strong growth and optimism in the manufacturing sector.
Q2. Why did growth accelerate now?
Factors include strong domestic orders, GST relief, festival demand, technology investment and improved productivity.
Q3. Does this mean India’s economy is fully back on track?
While promising, the slower services growth and export weakness mean caution is still warranted — a broad‑based recovery is needed.
Q4. What should investors/businesses focus on?
Look at sectors benefiting from domestic demand (consumer goods, capex goods), monitor input‑cost trends, and watch export signals.
Q5. Where does spirituality come in?
The growth without values is incomplete — ethical business practices, worker welfare and societal good are crucial.
