India’s manufacturing PMI rises to 4-month high in Feb over robust domestic demand

New Delhi, March 2
The manufacturing PMI in India rose from 55.4 in January to a four-month high of 56.9 in February, as a substantial improvement in domestic demand for Indian goods fuelled new order intakes and spurred the greatest upturn in production volumes for four months, S&P Global data showed on Monday.

The latest figure of seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) was consistent with a marked improvement in the health of the sector.

“India’s final manufacturing PMI reflected an acceleration in manufacturing activity in February. Output expanded at a faster rate for a second month, supported by stronger domestic orders,” said Pranjul Bhandari, Chief India Economist at HSBC.

However, growth in new export orders continued its slowing trend that began in mid-2025, somewhat restricting employment creation in the manufacturing sector, Bhandari mentioned.

Goods producers in India indicated that demand buoyancy, marketing initiatives and rising client requirements underpinned another expansion in new business intakes. Moreover, the pace of growth was historically elevated and the strongest since last October.

Output also rose at the fastest pace in four months and one that was above its long-run average. According to panel members, efficiency improvements, healthy underlying demand, rising intakes of new work and tech investment collectively boosted production volumes, said the report.

Cost pressures remained benign, rising at a moderate rate that matched that seen in January. Output charge inflation ticked higher, however, and outpaced its long-run average, it noted.

The PMI is a gauge of overall conditions derived from measures of new orders, output, employment, supplier delivery times and stocks of purchases.

Where external sales rose, monitored companies cited gains from Asia, Europe the Middle East and the US.

“One area where growth took a step back was new export orders. February's increase was the slowest in 17 months, with the rate of expansion broadly converging towards its long-run average,” said the report.