In December 2025, India's manufacturing sector experienced a slight slowdown as the S&P Global Manufacturing Purchasing Managers' Index (PMI) dipped to 55.0 from a robust 56.6 the previous month. The latest figure, updated on January 2, 2026, signals a deceleration in manufacturing growth while still indicating expansion, as any reading above 50.0 reflects expansion in the sector.
This decline suggests that the manufacturing industry's momentum is moderating, impacting expectations for India's economic performance moving forward. Factors contributing to this slowdown may include fluctuating demand in key markets, raw material prices, or supply chain disruptions which continue to affect manufacturing globally.
Despite the decline, the PMI remains above the neutral threshold, signifying continued positive activity in the sector. Analysts suggest that maintaining this expansionary trend will depend on bolstering domestic demand and addressing operational challenges faced by manufacturers. The industry's performance in the coming months will be critical to sustaining India's economic growth trajectory into 2026.
