India's HSBC Manufacturing PMI rose to 55.1 in September 2026 from 52.8 in August, revised down from a preliminary estimate of 55.7 but still signaling the strongest improvement in the sector’s health in seven months. New orders grew at their fastest pace in seven months, and output growth accelerated to a four-month high, supported by firmer demand for electronics, food, pharmaceutical and textile products.
New export orders also expanded at a quicker rate, aided by stronger demand from Brazil, Europe, the UAE and the US. The rebound in demand underpinned a solid recovery in factory employment, with job creation rising at its fastest pace since May. Purchasing activity and inventories increased at steeper rates, while business confidence strengthened to a four-month high.
On the price front, input cost inflation intensified, driven by higher prices for electronic components, pharmaceutical products and steel. Selling price inflation also picked up, though it remained relatively modest.
