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India manufacturing activity strengthens despite geopolitical cost challenges; PMI at 55.0 in May
Jun-01-2026

India’s manufacturing sector growth accelerated further in the month of May 2026, with quicker increases in buying levels, new orders and output, despite cost pressures among strongest in four years. The war in the Middle East continued to exert pressure on cost burdens. Purchasing prices rose at the second-fastest pace since April 2022 (behind April), while the rate of output charge inflation was below the average seen over the past year. 

According to the survey report, the seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) rose to 55.0 in May from 54.7 in April. On the employment front, greater production requirements induced another round of job creation across India's manufacturing industry. The rate of expansion was solid, despite slowing from April.

The survey report further noted that outstanding business volumes rose for the second straight month in May, but at a marginal pace that was broadly similar to April. Meanwhile, business confidence remained positive, with companies hoping that cost pressures will fade later in the year. Advertising and strong order pipelines also supported optimism towards growth prospects.


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