ENA Sectors 2025-09-01 18:01:35 <p><span style="font-size:14px"><strong>New Delhi, Sep 1 (KNN)</strong> Indias manufacturing industry recorded its fastest expansion in more than 17 years in August 2025, highlighting strong domestic demand despite global trade challenges.</span></p> <p><span style="font-size:14px">The HSBC India Manufacturing Purchasing Managers Index (PMI), compiled by S&amp;P Global, rose to 59.3 in August from 59.1 in July. This marks the highest reading since early 2008, signaling a sharp improvement in operating conditions and robust business momentum.</span></p> <p><span style="font-size:14px">The surge was driven mainly by faster production growth, the strongest in nearly five years. New orders also stayed firm, maintaining Julys 57-month high pace. Companies attributed this momentum to buoyant local demand and effective marketing strategies.</span></p> <p><span style="font-size:14px">On the global front, export orders rose at a slower rate, hitting a five-month low. The slowdown was largely linked to the U.S.s steep 50% tariffs on Indian exports. </span></p> <p><span style="font-size:14px">However, Indian manufacturers continued to secure business from markets in Asia, Europe, the Middle East, and the U.S., reflecting resilience in overseas demand.</span></p> <p><span style="font-size:14px">Domestically, the outlook remained upbeat. Companies scaled up input purchases at a 16-month high, rebuilt inventories, and expanded output significantly. Employment rose for the 18th straight month, though hiring slowed to its weakest pace since November 2024.</span></p> <p><span style="font-size:14px">Inflationary pressures persisted, with input and output prices rising. However, strong demand allowed firms to pass on higher costs to consumers. </span></p> <p><span style="font-size:14px">Business sentiment also improved, rebounding from a three-year low in July, signaling renewed confidence in the sectors growth prospects.</span></p> <p><span style="font-size:14px">Overall, Indias manufacturing sector showed remarkable strength in August, supported by domestic demand and production growth, while navigating external pressures from global trade dynamics.</span></p> <p><span style="font-size:14px"><em><strong>(KNN Bureau)</strong></em></span></p> 43354 https://knnindia.co.in/news/newsdetails/sectors/indias-manufacturing-sector-surges-to-17-year-high-in-august 2025-09-01 18:01:35 knnindia.co.in