India’s manufacturing PMI rose to 59.2 in July 2025, the highest since early 2008. The rapid surge reflects a significant pickup in India’s manufacturing sector. The increase from 58.4 in June indicates that growing export and domestic demand are fueling factory growth.
Furthermore, the July composite output index remained elevated, meaning that the services and manufacturing sectors remain strong. The boom was driven by high demand, technology spending, and hiring, HSBC and S&P Global said. Hence, companies overall are fairly confident in the coming year, even with inflation concerns.
India’s Manufacturing PMI Signals Robust Factory Momentum
The most recent flash data reveals that India’s industrial scene is booming, with factory growth gaining momentum in major sectors. July’s factory PMI at 59.2 reflects a sharp improvement in operating conditions driven by increased production and new orders.
Domestic consumption, therefore, remained the prime driver of growth even as external demand improved. The greatest output growth since April 2024 was achieved by goods producers, who outperformed services in terms of sales and order flows.
Are Export Orders Enough to Sustain Expansion?
The composite output index increased more quickly than it had in more than a year. Nonetheless, it fell marginally from 61.0 to 60.7. The index signals a general recovery in demand by merging manufacturing and services data.
Even with moderation, service activity continued to exhibit robust growth. Concurrently, the labor market rebounded due to continuous job growth, especially in the services industry. Additionally, businesses identified technological advancements and improved infrastructure as major growth drivers.
Manufacturing PMI Signals Broader Outlook for 2025
Strong sales pipelines, robust order books, and increased export volumes are probably going to keep growth going for a while. However, some sectors may experience friction due to competition and rising input costs. Most businesses are still positive regarding their production outlook.
However, business sentiment fell to its lowest level in over two years. While factory expansion may slow down, India is currently leading the world in manufacturing flows. Therefore, high composite output numbers show how flexible the economy is in the face of inflationary pressures.
Will strong PMI figures translate into long-term gains?
India’s economic health is strongly indicated by the July PMI results. The manufacturing PMI shows both manufacturing and services are doing well, reaching a nearly two-decade high. Factory expansion continues to surpass forecasts despite global uncertainties.
The composite output’s consistent increase bolsters a widespread recovery. Additionally, increased employment and technological investment are probably going to support this trend. India’s industrial engine could set a new standard for emerging market growth if the current circumstances continue.
About The Author
