New Delhi, Nov. 4 -- There's fresh evidence the goods and services tax (GST) cuts are lifting economic activity in India. The HSBC India Manufacturing Purchasing Managers' Index (PMI) has climbed to 59.2 in October from 57.7 in September. Readings above 50 indicate an expansion while those below point to contraction.

That it was already much above that threshold and has now risen further points to growing strength in the sector. The PMI survey's findings showed October's expansion was supported by strong domestic demand, leading to increased output and purchases.

This broadly mirrors trends seen in other parts of the economy where lowered GST rates have whetted demand for goods and services alike. Automobile sales, which contribute majo...