FX.co ★ India Manufacturing Expands Least in Nearly 5 Years

India's HSBC Manufacturing PMI slipped to 53.5 in July 2026 from 54.2 in June, below the preliminary estimate of 53.9 and signaling the weakest pace of growth since August 2021. Both output and new orders continued to rise, but overall sales increased at one of the slowest rates in more than four years amid challenging market conditions and softer client demand. In contrast, export orders strengthened, driven by firmer demand from Canada, Egypt, Indonesia, Kenya, Nepal, South Africa, Thailand, and the UAE. Weaker domestic demand also curbed growth in purchasing activity and employment, with input buying increasing at the slowest rate in 31 months. Supply-chain conditions improved significantly, as delivery times shortened at close to a record pace. On the price front, input cost inflation eased to a five-month low, while output price inflation remained moderate. Business confidence improved, supported by expectations of stronger demand and increased infrastructure spending.