India's Manufacturing PMI Hits 4-Month High at 56.9 in February

India Manufacturing PMI climbed to a four-month high of 56.9 in February 2026, signaling stronger factory activity driven mainly by solid domestic demand, according to the latest HSBC India Manufacturing Purchasing Managers' Index compiled by S&P Global and released on March 2.

The reading, which came in above January's 55.4 and stayed well over the 50 mark that separates expansion from contraction, showed a clear pickup in the sector's health. It marked the fastest improvement in operating conditions in months, even though the final number was revised down slightly from the preliminary flash estimate of 57.5.

Strong domestic orders fueled the gains. Manufacturers reported a substantial boost in new business from home markets, with the pace of new order growth hitting its strongest level since October 2025. Demand buoyancy, better marketing efforts, and growing client needs all played a role in lifting intakes.

Also Read: Smart Manufacturing: From Connected Units to Cognitive Businesses

This surge in orders pushed production higher too. Output expanded at the quickest rate in four months, beating the long-run average. Panel members pointed to efficiency gains, healthy underlying demand, rising new work, and investments in technology as key drivers behind the faster production volumes.

On the export side, things cooled off. New export orders grew at the slowest pace in 17 months, with the expansion rate moving closer to its long-run average. Where gains did happen, companies noted increases from markets in Asia, Europe, the Middle East, and the US. The slowdown in exports somewhat limited job creation, keeping employment growth modest overall despite firms adding staff to handle bigger workloads.

Garima Kapoor, Deputy Head of Research and Economist at Elara Capital, said: "The shift to the 2022-23 base year strengthens data quality through wider GST integration, improved coverage of the unincorporated sector, double deflation in agriculture and manufacturing, and better benchmarking. Manufacturing GVA is growing in double digits."

Also Read: How AI and Machine Learning Are Transforming Test Automation

India Manufacturing PMI data also showed cost pressures staying moderate and unchanged from January, while output price inflation edged up a bit and ran above the long-run average.

Pranjul Bhandari, Chief India Economist at HSBC, said: “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. However, growth in new export orders continued its slowing trend that began in mid-2025, somewhat restricting employment creation in the manufacturing sector.”

CLICK HERE TO CATCH THE LATEST INDUSTRY STORIES

The survey, based on responses collected from February 9-23, highlights how domestic strength continues to power India's manufacturing rebound amid a resilient broader economy. This comes after recent strong GDP prints and points to sustained momentum in the sector heading forward.