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Indian manufacturing growth bounces back in January; PMI at 55.4
Feb-02-2026

After December’s dip, Indian manufacturing growth bounced back in the month of January, amid faster increases in new orders, output, employment and buying levels. According to the survey report, the seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) surged to 55.4 in January 2026 from 55.0 in December 2025, indicating a stronger improvement in the health of the sector.

The main impetus to overall sales came from the domestic market. New export business still increased, but did so to one of the weakest extents in 15 months. Competitive pricing helped support sales. Although output charges rose, the rate of inflation was modest and the weakest in nearly two years. Improved efficiency, better cost management and market rivalry prevented them from increasing their fees.

The survey report further noted that with outstanding business volumes rising again at the start of the year, goods producers continued to hire extra staff. The pace of job creation was slight, albeit the quickest in three months. Further, business confidence slipped to its lowest level in three-and-a-half years during January, as only 15% of companies foresee output growth in the year ahead and 83% forecast no change.

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