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Informist, Monday, Feb. 2, 2026

 

--India Jan manufacturing PMI 55.4 vs 55.0 in Dec 

 

NEW DELHI – India's manufacturing sector growth rebounded in January from a two-year low in December with quicker expansion in factory orders and production, S&P Global said Monday. Input prices rose at the quickest rate in four months but the rate of increase was negligible by historical standards, while factory gate inflation eased to a 22-month low, said S&P Global, which compiles the PMI.

 

The HSBC India Manufacturing Purchasing Managers' Index rose to 55.4 in January from 55.0 in December, which was the lowest since December 2023. The final manufacturing PMI print for January was lower than the flash figure of 56.8, data for which was released on Jan. 23. A PMI reading of more than 50 denotes expansion in activity, while a print below it shows contraction. 

 

"Granular data showed consumer goods as the brightest area of India's manufacturing industry, with the slowest improvement in operating conditions seen in capital goods," S&P Global said. "Survey participants continued to mention that demand buoyancy, new business growth, and tech investment supported production. Output rose sharply and at a quicker pace than that recorded in December."

 

Even as the manufacturing PMI print rose in January, it was the second-lowest since December 2023. Manufacturing activity, as per the PMI, has lagged behind the services sector over the last few months. India's Union Budget, presented Sunday, announced steps to boost the manufacturing sector in areas of strategic importance such as textiles, healthcare, semiconductors, electronics components, rare earth permanent magnets, and containers.

 

New orders expanded at a faster rate in January, with firms citing higher demand and marketing efforts for the rise in sales. The main impetus to overall sales came from the domestic market, while new export orders saw the weakest rise in 15 months. Firms saw greater demand from Asia, Australia, Canada, Europe and West Asia.

 

"Underlying data showed that competitive pricing helped support sales," S&P Global said. Firms suggested that improved efficiency, better cost management, and market rivalry prevented them from increasing their fees. Some firms reported paying more for chemicals, copper, iron, jute, paper, steel, and transportation.

 

Manufacturing firms hired extra staff in January with outstanding business volumes rising at the start of the year, S&P Global said. The pace of job creation was the quickest in three months. Business confidence slipped to its lowest level in three and a half years last month, as only 15% of companies foresee output growth in the year ahead and 83% forecast no change, S&P Global said.  End

 

Reported by Shubham Rana

Edited by Avishek Dutta

 

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