The HSBC India Manufacturing PMI rose to 56.9 in February 2026 from 55.4 in January, revised down from an initial estimate of 57.5. Despite the downward revision, the reading was a four-month high, indicating a marked improvement in operating conditions.
Factory output grew at the fastest pace in four months, driven by robust domestic demand and a rise in new orders. However, growth in new export orders eased to its weakest level in 17 months. Employment increased slightly, posting its strongest expansion in four months, as firms added staff to manage higher workloads.
Purchases of inputs and inventory levels also rose at the quickest rate in three months, pointing to higher production needs and some precautionary stockpiling. Input cost inflation remained moderate and was unchanged from January, while output prices increased at a faster pace, exceeding the long-run average.
Backlogs of work edged up to a seven-month high, and business sentiment stayed positive. Overall, firms were optimistic about output over the coming year, with 16% expecting growth.
