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India’s manufacturing sector growth eases in October; PMI at 54.7
Nov-02-2026

India’s manufacturing sector growth eased in the month of October 2026, amid softer increases in output and new orders. According to the survey report, the seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) fell from 55.1 in September to 54.7 in October, however was comfortably above the neutral mark of 50.0.

The survey report noted that a sustained improvement in demand was reflected in a further sharp rise in new business. Growth eased only marginally from September’s seven-month high and remained strong by historical standards, amid favourable demand trends, new client wins and successful marketing campaigns. Besides, overseas markets contributed to the upturn, as new export orders increased at the fastest rate in six months. 

Supported by rising sales and new product releases, firms lifted output at a sharp rate that exceeded its long-run average. Growth nevertheless softened from the previous month, driven by a slowdown among intermediate goods makers. This category still led the expansion, however. Although some material and energy costs increased, overall input and output price pressures eased slightly from the previous month.

Higher production requirements and rising workloads encouraged a second successive monthly increase in factory employment. The pace of job creation eased, however, and was only slight. Capital goods producers reduced staffing, with growth seen elsewhere. Outstanding business volumes meanwhile rose for the seventh consecutive month at the start of the third fiscal quarter, though the pace of accumulation was fractional.


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