India's manufacturing sector surges to 7-month high in September

India's manufacturing sector gathered momentum in September as business conditions improved sharply, signaling renewed growth in the industrial economy. The HSBC Manufacturing Purchasing Managers' Index (PMI) rose to 55.1, marking the strongest performance in seven months and up from 52.8 in the previous month.

The expansion was driven by a notable acceleration in new order intake, which grew at its fastest pace since February, indicating strengthening domestic and international demand. Manufacturers reported increased business activity, with output expanding alongside the uptick in orders, suggesting improved capacity utilization across production units.

Export momentum also picked up during the month, reflecting growing international appetite for Indian manufactured goods. The combined reading across multiple indicators points to a sector gaining traction after a relatively muted period, with companies expanding operations to meet rising demand.

The PMI reading of 55.1, well above the 50-point threshold that separates expansion from contraction, underscores improving business confidence in the sector. The data suggests that India's manufacturing base is responding positively to global market conditions and domestic consumption patterns, positioning the sector for sustained growth in coming months.