India’s Manufacturing PMI reached 59.2 in July 2025. This is the highest level seen in almost 17.5 years, according to data from S&P Global. It shows strong growth in India’s factory output and rising business activity across the country.
In June, the PMI was at 58.4. This new jump proves that India’s manufacturing sector is not just recovering—it’s booming. Both domestic and international demand have played a big role in this rise.
Why This Growth Matters
More orders, better technology, and expanded factory space have helped push the sector forward. Many Indian companies are investing in tools and systems to make work faster and smoother.
The growth is not just in manufacturing. The Composite PMI, which includes both manufacturing and services, reached 60.7. That’s the fastest growth in over a year. It means India’s private sector is growing well.
What About Jobs?
There is good news here too. Job creation is happening, especially in the services sector. But in July, the speed of new hiring slowed down a little. This could be because of rising competition and inflation fears.
Still, Indian companies are hopeful. Most believe the next 12 months will bring even more growth. But they are watching inflation and pricing pressure closely.
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Challenges Ahead
The PMI report also noted that input costs and output prices went up in July. This means businesses are spending more and passing some of that cost to customers.
Also, business confidence dropped slightly. It’s still positive, but this is the lowest it has been in about two and a half years. Some companies are worried about inflation and tight competition.
What Experts Say
HSBC’s Chief India Economist, Pranjul Bhandari, said India’s composite PMI stayed strong in July. Manufacturers are leading the way. They’re seeing more orders, better export numbers, and strong output.
But inflation is rising, and that’s something businesses will need to manage carefully. Even with slower job growth, India’s economy looks solid.
India is clearly on a growth path. The Manufacturing PMI tells a strong story. It shows India’s factories are busy, jobs are growing, and businesses are thinking long-term.
The country is investing in tech, building more capacity, and meeting high demand from both local and global markets. If this continues, India could be one of the world’s top manufacturing powerhouses in the coming years.
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