India's manufacturing sector maintained its growth in October, as the Manufacturing Purchasing Managers’ Index (PMI) increased to 59.2 from 57.7 in September, based on data collected by S&P Global.

The rise was fueled by robust domestic demand, goods and services tax (GST) relief initiatives, enhancements in productivity, and increased investments in technology.

Pranjul Bhandari, the chief India economist at HSBC, observed: "India's manufacturing PMI rose to 59.2 in October, increasing from 57.7 in the previous month."

Strong final demand-driven growth in production, fresh orders, and employment opportunities. During October, input prices eased, and average selling prices rose as certain manufacturers transferred extra cost burdens to consumers.

Data indicates that new orders increased at the beginning of the third financial quarter, supported by heightened demand, increased advertising, and the recent GST reform.

The expansion was quicker than in September, and production at factories also rose more rapidly. The growth rate aligned with August’s figure, which was among the most robust in the past five years.

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A value over 50 signifies economic growth, whereas a value under 50 reflects a decline in the manufacturing, services, or construction industries. A reading of precisely 50 indicates no variation.

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The majority of sales growth originated from the domestic market, whereas export orders increased at a slower pace. Even though foreign demand for Indian products increased, it was the lowest seen this year.

In October, job growth in the manufacturing sector persisted for the twentieth consecutive month, with the hiring rate staying steady and relatively similar to September.

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Producers stayed positive regarding future business prospects, attributing their enthusiasm to GST reforms, expanded capacity, and enhanced marketing initiatives. Companies also anticipate demand to stay strong and are optimistic that outstanding contracts will be resolved shortly.