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Informist, Friday, Jan. 2, 2026

 

--India Dec manufacturing PMI 55.0 vs 56.6 in Nov 

--India Dec manufacturing PMI of 55.0 lowest in 2 years 

 

NEW DELHI – India's manufacturing sector ended 2025 on a sombre note, with activity slowing down to a two-year low in December, S&P Global said Friday. The HSBC India Manufacturing Purchasing Managers' Index fell to 55.0 in December, the lowest since December 2023, from 56.6 in November, S&P Global said. 

 

The final manufacturing PMI print for December was lower than the flash figure of 55.7, data for which was released on Dec. 16. A PMI reading of more than 50 denotes expansion in activity, while a print below it shows contraction. "The end of the 2025 calendar year was characterised by a loss of growth momentum across several measures tracked by the HSBC India Manufacturing PMI® survey," S&P Global, which compiles the PMI, said in a release. 

 

New orders saw the weakest rise since December 2023, and production levels expanded at the slowest pace since October 2022. Employment rose at the slowest pace since March 2024, S&P Global said. The slowdown in total sales was largely because of a softer increase in international orders. New export orders rose by the least extent in 14 months. Firms did see better demand from clients in Asia, Europe, and West Asia. 

 

"We have seen a steady spell of softer growth in new export orders. In fact, the share of companies signalling higher international sales in December was about half of the average for 2025," Pollyanna De Lima, economics associate director at S&P Global Market Intelligence, said in the release. "The survey's anecdotal evidence has also pointed to a narrower range of export destinations, with goods mainly heading to Asia, Europe and the Middle East. With Indian manufacturers facing less intense cost pressures than elsewhere, many will be hoping that competitive pricing can help bring in new business from other regions in the new year."

 

Input costs for manufacturing firms rose at a historically negligible pace in December. Firms did pay higher prices for bamboo, chemicals, glass, leather, and packaging last month. The rate of charge inflation also eased to a nine-month low, S&P Global said.

 

Manufacturing firms expect an increase in output during 2026 but the overall level of sentiment faded to its lowest in close to three and a half years in December, S&P Global said. While advertising, positive demand trends, and new product releases were seen as tailwinds to the outlook, some firms were concerned about competitive pressures and market uncertainty.  End

 

Reported by Shubham Rana

Edited by Avishek Dutta

 

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