India's HSBC Manufacturing PMI climbed to 59.3 in August—the highest in 17.5 years.

Output expansion reached its fastest pace in nearly five years, lifted by strong domestic orders.

Hiring picked up modestly, signaling better employment trends in the industry.

Export orders eased slightly amid U.S. tariffs, but overall momentum remains robust.

This strong showing confirms that domestic manufacturing remains a growth engine.

Inflationary pressure ticked up due to increased production and demand—but remains manageable.

The surge brings renewed investor confidence to capital goods and industrial sectors.

Input-linked equities could see inflows amid rising manufacturing optimism.

The PMI print underscores structural strength in Indian supply chains.

It reinforces the narrative that domestic demand is offsetting global trade pressures.