HSBC India July manufacturing PMI 59.2 vs 58.4

HSBC India July manufacturing PMI 59.2 vs 58.4

The HSBC India Manufacturing Purchasing Managers' Index (PMI) for July 2025 stood at 59.2, indicating a robust performance in the country's manufacturing sector. This figure represents a slight increase from the previous month's reading of 58.4, signaling a steady growth trajectory in the industry.

The PMI, which is a widely followed indicator of economic health, measures the activity level in the manufacturing sector. A reading above 50 indicates expansion, while a reading below 50 indicates contraction. The July PMI reading of 59.2 suggests that the Indian manufacturing sector continues to expand at a healthy pace, driven by strong increases in output, new orders, and job creation across various goods sectors [1].

This growth is underpinned by several factors, including the government's push for digital transformation and automation in manufacturing, as well as supportive policies aimed at boosting the sector's competitiveness. The National Manufacturing Policy, for instance, aims to increase the share of manufacturing in GDP to 25 percent by 2025, while the Production-Linked Incentive (PLI) scheme has been instrumental in attracting foreign direct investments (FDI) and boosting local manufacturing [1].

The manufacturing sector's resilience is also evident in the country's export performance. In April-December 2024, India's exports grew by 6 percent year-over-year, driven by strong growth in non-petroleum goods and services. Key contributors to this growth include pharmaceuticals, electronics, engineering goods, chemicals, and the e-commerce sector [1].

Moreover, the sector's potential for future growth is significant. By 2030, India's middle class is expected to have the second-largest share in global consumption, and the country's e-commerce exports are projected to grow from Rs. 8,757 crore (US$ 1 billion) to Rs. 35,02,800 crore (US$ 400 billion) annually by 2030 [1].

In conclusion, the HSBC India July PMI reading of 59.2 underscores the continued strength and resilience of the country's manufacturing sector. With supportive policies, digital transformation, and a growing domestic market, the sector is well-positioned to drive economic growth and job creation in the coming years.

References:
[1] https://www.ibef.org/industry/manufacturing-sector-india