In November, India's manufacturing sector exhibited continued expansion, as indicated by the S&P Global Purchasing Managers' Index (PMI), which rose to 56.0, marking an increase from the October figure of 55.5, an eight-month low. This growth signifies the 29th consecutive month of expansion, with the index remaining above the crucial 50-level threshold that distinguishes activity expansion from contraction.

Pollyanna De Lima, Economics Associate Director at S&P Global Market Intelligence, emphasized the sector's robust performance, citing the resurgence of output growth and the pivotal role of securing new business, both domestically and internationally. The sustained growth in new orders positively impacted the labor market, leading to continued recruitment. The manufacturing sector's overall health was evident through expanded capacities, increased workloads, and the necessity to replenish finished goods stocks.

The November upturn in the manufacturing PMI was propelled by a significant rise in new work orders, with companies experiencing positive demand trends, heightened client requirements, and favorable market conditions. While new export orders extended their growth streak to 20 months, the rate of increase in November was the slowest since June. Despite this, manufacturing output expanded at an above-trend pace, contributing to an eighth consecutive month of employment growth in the sector.

Of particular note for policymakers was S&P Global's observation that input cost inflation in November was historically negligible, reaching its lowest level in the ongoing 40-month period of increases. This, in turn, led to a seven-month low in selling price inflation, with fewer than 7 percent of manufacturers raising prices. Despite some concerns about near-term price increases reflected in business sentiment data, the softer uptick in output charges aligned with a reduced inflationary environment, as highlighted by De Lima.