New Delhi, Aug. 1 -- India's manufacturing activity surged to a 16-month high in July, driven by strong growth in production and new orders, according to the HSBC India Manufacturing Purchasing Managers' Index (PMI) by S&P Global.

The PMI rose to 59.1 in July, up from 58.4 in June, marking the highest level since March 2023. A PMI above 50 indicates expansion.

The robust performance was supported by a sharp rise in new orders and improved demand conditions. Many firms credited successful marketing efforts for the surge, with overall sales rising at the fastest pace in nearly five years. As a result, production saw its strongest growth in 15 months.

Despite these gains, business confidence dropped to a three-year low due to growing conc...