India's manufacturing PMI at 31-month high; rises to 58.7 in May

India's manufacturing PMI has expanded to 58.7 in May from 57.2 in April. This comes as the 23rd month of manufacturing PMI remaining above 50 and is at a 31 month high.

A PMI reading of above 50 indicates expansion in manufacturing and below represents contraction.

"India's manufacturing PMI showcased encouraging developments in May, painting a notably positive picture for the sector. Demand conditions demonstrated remarkable strength, with factory orders rising at the fastest pace since January 2021,” S&P Global said in a statement.

The report also added that amid growing new orders and the favourable market conditions, the manufacturers scaled up production. The surge in sales also lead to increase in employment opportunities.