Manufacturing sector growth slows in India

India manufacturing sector growth eased in October 2026 as the HSBC India Manufacturing Purchasing Managers Index reached 54.7. The index fell from 55.1 in September but remained above the neutral 50.0 mark. Increased output needs and heavier workloads prompted firms to add to their factory payrolls for the second month in a row.

The survey report noted that growth softened due to a slowdown among intermediate goods makers, despite this category leading the overall expansion. Output and new orders saw softer increases compared to the previous month. New export orders grew at the fastest rate in six months, supported by favourable demand trends and new client wins. Firms lifted output at a rate exceeding the long-run average, aided by new product releases and rising sales.

Input and output price pressures eased slightly from September, even as some material and energy costs increased. Factory job creation continued for the second consecutive month, although the pace of hiring was slight. Capital goods producers reduced staffing levels during the month. Outstanding business volumes rose for the seventh consecutive month, though the pace of accumulation remained fractional at the start of the third fiscal quarter.

Based on company and agency reports. For information only; not investment advice.