Strong Export Demand Keeps India’s July Manufacturing PMI at 53.5

New Delhi, 3 July – The HSBC India Manufacturing Purchasing Managers' Index for July registered a reading of 53.5, marginally lower than June’s 54.2 but still reflecting healthy growth. The S&P Global‑sourced survey indicates that manufacturers are enjoying continued strong demand, especially from overseas buyers.

While new export orders surged, other metrics such as overall sales, input buying and hiring showed a slight deceleration. Operating costs rose, notably in transport, yet the pace of cost inflation eased to a five‑month trough, limiting upward pressure on output prices.

Chief economist Pranjul Bhandari highlighted an improving delivery‑time index, suggesting that supply‑chain delays are diminishing. However, renewed tensions in the Middle East have introduced uncertainty, prompting firms to restock buffers and increase inventories of both inputs and finished goods.

Export activity expanded across a range of destinations – Canada, Egypt, Indonesia, Kenya, Nepal, South Africa, Thailand and the UAE – signalling a broadening of India’s manufacturing export footprint.