FX.co ★ India Manufacturing Posts Slowest Growth in 2 Years

According to preliminary estimates, the HSBC India Manufacturing PMI decreased to 55.7 in December 2025 from 56.6 in November, indicating the slowest improvement in manufacturing conditions since December 2023. Although factory output continued to rise significantly, the rate of growth fell to a ten-month low, accompanied by a deceleration in new orders. On a positive note, export demand strengthened, with new export orders reaching a three-month high. Employment in the manufacturing sector saw a slight uptick, signifying adequate staffing levels as workloads eased. Input cost inflation remained subdued, experiencing only a modest rise, while output price inflation decreased for a second consecutive month, reaching its lowest point since March. Stocks of purchases increased at a slower pace, and supplier delivery times improved further. Business confidence among manufacturers improved slightly from November, although overall sentiment was still lower compared to earlier in the year.