FX.co ★ India Factory Growth Hits 17-Year Peak

The HSBC India Manufacturing PMI rose to 59.2 in July 2025, up from 58.4 the previous month, as per preliminary estimates. This figure signals a vigorous expansion in manufacturing activity, marking the highest point in nearly 17 and a half years, and underscores the sector's ongoing momentum. Output strength was mirrored by a significant increase in new orders, though growth in new export orders saw a slight deceleration, suggesting a moderation in external demand. The survey also reported a sharp rise in purchasing activity, leading to a notable accrual of input inventories, boosted by ongoing improvements in supplier delivery times. However, stocks of finished goods fell as manufacturers increasingly tapped into existing inventories to meet robust demand. On the pricing spectrum, charge inflation accelerated, highlighting stronger pricing power among producers, buoyed by resilient demand conditions.