The HSBC India Composite PMI climbed to 58.9 in February 2026 from 58.4 in January, although it fell slightly short of the flash estimate of 59.3. This was the strongest expansion since November, underpinned by a marked improvement in demand conditions. Overall growth in new orders was broadly consistent with the pace seen around the turn of the year, while employment rose at its fastest rate since October.
Manufacturing drove the upturn, recording stronger increases in both output and new business. By contrast, growth in the services sector softened but remained comfortably within expansionary territory.
On the price front, both input costs and output charges accelerated, with overall price inflation reaching nine- and six-month highs, respectively. Services firms were the main source of these price pressures, reporting stronger increases in both costs and charges than manufacturers, underscoring resilient underlying demand in the services economy.
