India Manufacturing PMI Slows
Analysis based on 9 articles · First reported Jan 02, 2026 · Last updated Jan 02, 2026
The slowdown in India's manufacturing sector, as indicated by the HSBC India Manufacturing PMI, suggests a moderation in economic activity, which could lead to concerns about India's growth trajectory. While the sector remains in expansion, the easing momentum and weaker business confidence may prompt policymakers and market participants to closely monitor future economic data for India.
India's manufacturing sector experienced a significant slowdown in December 2025, with the HSBC India Manufacturing Purchasing Managers' Index (PMI) falling to 55.0 from 56.6 in November, marking a two-year low. This deceleration was primarily driven by softer expansions in new orders, which in turn led companies in India to limit input purchases and job creation. Production growth slowed to a 38-month low, and new export orders increased at the weakest pace in 14 months, with demand mainly from Asia, Europe, and the Middle East. Despite the loss of momentum, the sector remained in expansion territory (above 50), and input costs rose at a historically negligible pace, with 'charge inflation' easing to a nine-month low. However, overall business sentiment among Indian manufacturers for 2026 has faded to its lowest in nearly three-and-a-half years, due to concerns about competitive pressures and market uncertainty, as noted by Pollyanna De Lima of WSP Global Market Intelligence.
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