India's manufacturing sector rebounds in October, PMI rises to 59.2
What's the story
India's manufacturing sector showed signs of recovery in October, with the HSBC Manufacturing Purchasing Managers' Index (PMI) rising to 59.2 from September's 57.7. The increase is attributed to a surge in festive-season demand and the government's Goods and Services Tax (GST) rate rationalization. The PMI has remained above the 58-mark for five out of seven months, indicating robust growth in the face of geopolitical uncertainties.
Growth indicators
Strong start for industrial sector in Q3 FY26
The latest PMI data suggests a strong start for India's industrial sector in the third quarter of FY26, despite the central bank's prediction of a slowdown from H1 highs. The Reserve Bank of India (RBI) projects a growth rate of 7% for the second quarter, down from 7.8% in Q1, which was its fastest pace in five quarters.
Revised projections
Growth forecasts revised upward by global agencies
Despite the projected slowdown, India's economic outlook is more optimistic than previously expected. Major international agencies have revised their growth forecasts upward in recent weeks. The International Monetary Fund (IMF) now expects a 6.6% growth for FY26, up from its July estimate of 6.4%. Meanwhile, the World Bank has also raised its forecast to 6.5%, from an earlier projection of 6.3%.