New Delhi, Jul 31: India’s manufacturing sector expanded at its fastest pace in six months during July, supported by healthy domestic demand, rising factory output and a steady increase in fresh orders. The latest survey highlighted improved business confidence despite continued global economic uncertainties.
Manufacturers reported stronger production levels as consumer demand remained resilient across several industries. Companies also witnessed an increase in new business, encouraging firms to expand capacity and maintain higher purchasing activity.
Employment in the manufacturing sector improved moderately as businesses hired additional workers to meet growing production requirements. Firms also increased inventories of raw materials in anticipation of sustained demand in the coming months.
Although input costs remained elevated, companies managed to pass on a portion of higher expenses through selective price increases. The pace of cost inflation, however, remained manageable compared to earlier months, helping preserve business margins.
Industry experts noted that improving supply chains and stable domestic consumption continued to support manufacturing momentum. However, exporters remained cautious due to uncertain global trade conditions and slower demand from overseas markets.
Businesses expect production levels to remain healthy through the second half of the year, supported by infrastructure spending, festive season demand and stable economic conditions. Economists believe continued manufacturing strength could provide a significant boost to India’s overall economic growth in the current fiscal year.