India’s manufacturing sector achieved a 16-month peak of 59.1 in July, driven by increased orders and output amidst positive market conditions, according to a Friday survey report.The HSBC India Manufacturing Purchasing Managers’ Index increased to 59.1 in July from June’s 58.4, indicating the sector’s strongest performance since March 2024.For PMI measurements, readings above 50 indicate sector growth, whilst those below 50 suggest decline.“India recorded a 59.1 manufacturing PMI in July, up from 58.4 during the prior month. This marked a 16-month high for the Indian manufacturing sector, which benefited from strong growth in new orders and output,” Pranjul Bhandari, Chief India Economist at HSBC, said, as quoted by PTI.The survey revealed unprecedented sales growth in nearly five years. Production levels reached a 15-month high in July, surpassing typical performance metrics.Indian manufacturers expressed confidence in increasing their output over the next 12 months, although overall positive sentiment declined to its lowest level in three years. “Business confidence fell to its lowest level in three years due to concerns over competition and inflation. Indeed, input and output prices in India’s manufacturing sector both remained elevated during July,” Bhandari said.The second fiscal quarter began with continued workforce expansion, albeit at the slowest rate in eight months.A significant majority (93 per cent) of respondents stated their current workforce levels were adequate. The July data showed only slight increases in pending work volumes. “Amid softening business confidence, Indian manufacturers hired extra staff at the slowest rate since November 2024,” Bhandari further added.Survey participants identified competition and inflation as primary growth obstacles.The report indicated heightened cost pressures in July. Input costs rose more rapidly than June, attributed to increased prices of aluminium, leather, rubber and steel. Respondents noted that positive demand enabled them to adjust their prices upwards.The HSBC India Manufacturing PMI data is gathered by S&P Global through questionnaires distributed to a panel of approximately 400 manufacturing purchasing managers.