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Informist, Monday, Mar. 2, 2026

 

--India Feb manufacturing PMI 56.9 vs 55.4 in Jan 

 

NEW DELHI – India's manufacturing sector growth picked up pace in February on the back of domestic demand even as export growth slowed down to a 17-month low, S&P Global said Monday. The HSBC India Manufacturing Purchasing Managers' Index rose to a four-month high of 56.9 in February from 55.4 in January.

 

The final manufacturing PMI print for February was lower than the flash figure of 57.5, data for which was released on Feb. 20. A PMI reading of more than 50 denotes expansion in activity, while a print below it shows contraction. 

 

"A substantial improvement in domestic demand for Indian goods fuelled new order intakes and spurred the greatest upturn in production volumes for four months," S&P Global said in a release. "International sales expanded at a comparatively mild pace, and one that was the weakest in close to a year-and-a-half."

 

The rise in manufacturing activity in the first two months of 2026 follows a sharp growth in the December quarter. Government data released Friday showed the manufacturing sector grew 13.3% in the December quarter, which supported the 7.8% GDP growth in the quarter.  

 

Manufacturing firms cited efficiency improvements, healthy underlying demand, rising intakes of new work, and technology investment for the rise in production volumes last month, S&P Global said. While export growth slowed in February, firms cited gains from Asia, Europe, West Asia, and the US.

 

"With total new orders continuing to expand sharply, manufacturers in India purchased additional materials to supplement production and add to inventories," S&P Global said. "Buying levels rose at the fastest pace in three months."

 

Cost pressures remained benign in February and rose at a similar pace as in January. Manufacturing firms saw higher expenses on labour, materials, and transportation, S&P Global said. 

 

To protect their margins from cost increases, goods producers raised selling prices in February. The rate of selling prices accelerated and outpaced its long-run trend, S&P Global said.

 

Firms hired more staff in February, which also added to labour costs, S&P Global said. Factory employment expanded at the quickest pace in four months in February. "One factor that supported additional hiring was a further increase in outstanding business volumes at manufacturers in India," S&P Global said. "Although marginal, the rate of backlog accumulation strengthened to a seven-month-high."

 

Goods producers remained positive about the year-ahead outlook with 16% of companies projecting growth and fewer than 1% anticipating a reduction, S&P Global said. "Boding well for the outlook were marketing efforts and favourable demand conditions, qualitative survey data showed."  End

 

Reported by Shubham Rana

Edited by Deepshikha Bhardwaj

 

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