India’s Manufacturing PMI: India’s manufacturing sector experienced notable growth in February, with activity reaching a four-month high, according to the HSBC India Manufacturing Purchasing Managers’ Index (PMI). The PMI rose to 56.9 from 55.4 in January, driven by a substantial increase in domestic demand, despite a decline in new export orders.
Pranjul Bhandari, Chief India Economist at HSBC, highlighted that the acceleration in manufacturing activity was supported by stronger domestic orders. The survey indicated that demand buoyancy, marketing initiatives, and rising client requirements contributed to the expansion in new business intakes.
While domestic demand showed robust growth, new export orders continued to decline, a trend that has persisted since mid-2025. Companies reported gains in external sales from regions such as Asia, Europe, the Middle East, and the U.S., but the slowing trend has somewhat restricted employment creation in the sector.
Cost pressures remained moderate, aligning with January’s levels, as manufacturers increased material purchases to support production and build inventories. Firms also expanded their workforce in response to rising workloads. Looking ahead, 16% of companies expect growth in output volumes over the next year, supported by marketing efforts and favorable demand conditions.
Published in SouthAsianDesk, March 3rd, 2026
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