3 months ago
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India’s manufacturing assemblage enactment witnessed a flimsy betterment successful January, amid a faster summation successful caller orders, adjacent arsenic concern assurance slipped to its lowest level successful three-and-a-half years, a monthly survey said connected Monday (February 2, 2026).
The seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI), roseate from a two-year debased of 55 successful December to 55.4 successful January.
In the PMI parlance, a people supra 50 means expansion, portion a people beneath 50 denotes contraction.
“Indian manufacturing firms saw a rebound successful January, driven by accrued caller orders, output, and employment. Input costs roseate moderately, portion the gait of maturation successful factory-gate prices eased, resulting successful flimsy borderline unit for manufacturers,” said Pranjul Bhandari, main India economist astatine HSBC.
Survey participants mentioned that request buoyancy, caller concern maturation and tech concern supported production.
The main impetus to wide income came from the home market. However, caller export concern increased, but astatine a weaker pace. Firms that experienced an uptick cited greater request from Asia, Australia, Canada, Europe and the Middle East.
On the occupation front, goods producers continued to prosecute other staff. But the gait of occupation instauration was ‘slight’, the quickest successful 3 months.
Meanwhile, concern assurance slipped to its lowest level successful three-and-a-half years during January, arsenic lone 15% of companies foresee output maturation successful the twelvemonth up and 83% forecast nary change.
“Despite faster maturation successful caller orders, concern assurance remains muted, and expectations for aboriginal output person declined to their lowest level since July 2022,” Mr. Bhandari added.
On the terms front, the survey noted that input prices roseate to the top grade successful 4 months, but output complaint ostentation retreated to a 22-month low.
“Although output charges rose, the complaint of ostentation was humble and the weakest successful astir 2 years. Many firms suggested that improved efficiency, amended outgo absorption and marketplace rivalry prevented them from expanding their fees,” the survey said.
The HSBC India Manufacturing PMI is compiled by S&P Global from responses to questionnaires sent to purchasing managers successful a sheet of astir 400 manufacturers. The sheet is stratified by elaborate assemblage and institution workforce size, based connected contributions to GDP.
