India Manufacturing PMI Hits 4-Month High
Analysis based on 34 articles · First reported Mar 02, 2026 · Last updated Mar 02, 2026
The strong manufacturing PMI data from India indicates robust domestic demand and economic resilience, which is positive for India's equity markets and currency. However, the slowdown in export orders suggests potential headwinds from global demand or trade policies, which could temper overall growth expectations.
India's manufacturing sector experienced significant growth in February, with the HSBC India Manufacturing Purchasing Managers' Index (PMI) rising to a four-month high of 56.9, up from 55.4 in January. This expansion was primarily fueled by strong domestic demand, leading to increased new orders and production volumes. Output rose at the fastest pace in four months, supported by efficiency improvements and technology investments. While input cost inflation remained moderate, manufacturers increased selling prices to protect margins. Employment also saw its quickest growth in four months. However, new export orders expanded at the slowest pace in 17 months, with growth converging towards its long-run average, despite gains from regions like Asia, Europe, the Middle East, and the United States. Pranjul Bhandari, Chief India Economist at HSBC, noted that the slowing export trend began in mid-2025 and has somewhat restricted employment creation. Despite this, the overall outlook for India's manufacturing sector remains positive, with firms anticipating continued growth.
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