India factory boom as GST 2.0, demand drive surge
Manufacturing activity in India accelerated during October as factories benefited from stronger consumer purchases at home, policy changes and technology upgrades. The HSBC India Manufacturing Purchasing Managers’ Index climbed to 59.2 last month compared with 57.7 in September, according to figures gathered by S&P Global. Any measurement above 50 signals growth while readings below that threshold indicate contraction.
Factory production and incoming business expanded at a faster pace at the start of the third financial quarter, matching the strength recorded in August. That level represented the most vigorous expansion rates during the past five years. Pranjul Bhandari, who serves as chief India economist at HSBC, attributed the acceleration to healthy final demand that supported gains in production volume, new business and workforce additions.
Costs for raw materials and other inputs eased to an eight-month low in October. However, manufacturers raised their selling prices to the highest point in 12 years for a second straight month as businesses transferred elevated freight and labor expenses to buyers. Domestic sales grew faster than export orders despite some improvement in foreign demand. Factories added workers for a 20th consecutive month while business sentiment remained positive due to regulatory reforms, expanded capacity and marketing initiatives.
