According to the HSBC India Manufacturing PMI data released on Monday, India’s manufacturing sector maintained strong growth in November, with the pace of expansion staying above its long-term average.
The country recorded a Manufacturing PMI of 56.5 in November, slightly down from the previous month but still indicating robust growth in the sector.
Pranjul Bhandari, HSBC’s Chief India Economist highlighted, “Strong broad-based international demand, evidenced by a four-month high in new export orders, fuelled the Indian manufacturing sector’s continued growth.”
While domestic sales were somewhat impacted by price pressures, the surge in export orders helped to offset the slowdown.
The growth in international demand was at its strongest in four months, with gains reported from a variety of countries including Bangladesh, China, and Italy.
With favorable demand conditions, Indian manufacturers ramped up production in November.
Factory employment also increased for the ninth consecutive month, though the rate of job creation softened slightly compared to October. Both permanent and temporary staff hired to meet the sector’s growing needs.
Indian manufacturers increased their purchases of inputs for production and inventory, with the rise in buying levels being significant, though the slowest in nearly a year.
The report mentioned, “Average lead times shortened further, reportedly due to strong relationships with long-standing suppliers. The improvement in vendor performance was mild but nevertheless the best since July.”
As a result, manufacturers were able to replenish their input stocks, with the accumulation rate significantly exceeding the long-term average.
Also Read: India’s UPI Hits 15.48 Billion Transactions In November; Marking 38% Growth
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