India's manufacturing sector saw a significant increase in June, with hiring reaching its highest level in 19 years.

The manufacturing sector in India has seen a significant boost in June, according to a report released by HSBC on Monday. This surge in activity can be attributed to a rise in consumer demand, which has led to the fastest rate of hiring in 19 years. Maitreyi Das, a global economist at HSBC, stated that the manufacturing PMI index rose to 58.3 in June, a 0.8 percentage point increase from the previous month. This growth was driven by an increase in new orders and output.

The report also highlighted the strong performance of the consumer goods industry, with significant growth seen in both intermediate and investment goods categories. Additionally, the survey revealed that export growth is expected to be better than the previous year, with strong growth recorded in new export orders from countries like Asia, Australia, Brazil, Canada, Europe, and the US.

Despite input inflation remaining above the long-run average, manufacturers were able to pass on the higher costs to customers due to the robust demand. This resulted in improved margins, as stated by Das. In line with this positive trend, Commerce and Industry Minister Piyush Goyal has projected that India's goods and services exports are expected to surpass $800 billion in 2024-25, with a projected increase of 3 percent.

Furthermore, the Reserve Bank of India has recently revised India's growth forecast upwards to 7.2 percent from 7 percent earlier. This further solidifies the positive outlook for the manufacturing sector and the overall economy. With consumer demand on the rise and export orders showing strong growth, the future looks bright for India's manufacturing industry.

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