India's HSBC Manufacturing PMI rose to 55.7 in September 2026 from 52.8 in August, according to preliminary estimates, signaling the strongest improvement in manufacturing sector conditions since February. Output and new orders expanded at a faster pace, as goods producers reported firmer demand. New export orders also grew slightly more quickly, supported by increased sales to Brazil, Europe, the UAE, and the US.
Manufacturers stepped up their purchasing activity, while shorter supplier delivery times contributed to a further enhancement in operating conditions. Input inventories increased at the fastest rate since February, and finished goods stocks climbed to their highest level in eleven and a half years.
On the pricing front, input cost inflation accelerated, reflecting higher expenditure on electrical components, food, fuel, metals, pharmaceutical ingredients, and technology resources. This, in turn, drove a stronger rise in factory-gate prices. Looking ahead, business confidence among manufacturers improved in September, indicating a more optimistic outlook for the sector.
