India's manufacturing sector witnessed a marginal dip in activity during May 2025, according to the latest data from the S&P Global Manufacturing Purchasing Managers' Index (PMI). Released on June 2, 2025, the figures indicate a drop in the PMI reading to 57.6, down from the previous high of 58.2 recorded earlier in the same month.
While a PMI above 50 still signifies overall expansion, the slight decline suggests a cooling in the pace of growth within the country's manufacturing sector. Despite the decrease, India’s manufacturing industry continues to perform robustly, maintaining its positive momentum well above the expansion threshold.
The slight backslide in May could be attributed to a variety of factors, including potential shifts in domestic demand or global economic pressures. Nevertheless, the sector remains resilient, reflecting the continued adaptability and strength of manufacturers in navigating fluctuating market conditions. Stakeholders will now closely monitor upcoming data releases to gauge whether this trend is transient or indicative of a more sustained adjustment in the sector's growth trajectory.
