India’s economic momentum continues with record growth

What’s going on here?

India’s economy is flexing its muscles as strong demand in manufacturing and services spurs the fastest job growth in 17 years and sets the stage for expansion despite rising costs.

What does that mean?

Momentum in India’s corporate sector picked up in October, marking a 39-month growth streak that has broken all records since 2013. The India Composite PMI, funded by HSBC and tracked by S&P Global, rose to 58.6 from 58.3 in September, signaling continued economic acceleration. The manufacturing PMI reached 57.4, driven by new and export orders, indicating a booming industrial scene. The services sector was not far behind, with a Purchasing Managers’ Index (PMI) of 57.9, and job creation there is outpacing manufacturing. Employment growth reached levels not seen since February 2006, driven by international demand. This success is due to Prime Minister Modi’s manufacturing incentive scheme, which attracted $17 billion in investments, increased production and created nearly a million jobs.

Why should I care?

For markets: India’s growth: a beacon amid global uncertainty.

As India improves its economic environment, global companies are looking for opportunities in this busy market. The manufacturing and services sectors are growing rapidly, and manufacturing incentives make India an attractive place to invest. However, rising input costs – for example for chemicals, meat and metals – are driving up production consumer Prices and pressure benefit Margins.

The overall picture: A resilient economy with room for growth.

India’s economic growth is contrasting with a global economic slowdown. As companies face higher production costs, there is optimism, particularly in the manufacturing sector. However, concerns remain regarding services companies with a slightly clouded outlook. As international demand continues to drive growth, India’s strategic policies and investments provide a supportive backdrop that is likely to sustain its emerging economic status.