The HSBC India Manufacturing PMI climbed to 57.5 in February 2026 from 55.4 in January, according to preliminary estimates. This indicates a strong expansion in manufacturing activity and represents a four-month high. Output growth accelerated, driven by firmer domestic demand, while new orders rose at the fastest rate since November.
In contrast, export sales grew only modestly, marking the slowest increase in 16 months. Employment also recorded a slight rise, as firms expanded their workforce to handle higher workloads. Input purchases and inventories increased, both to support current production requirements and as part of precautionary stock-building.
On the price front, input costs continued to rise at a steady pace, and firms passed these increases on through higher output prices, underscoring persistent inflationary pressures. Despite these cost challenges, business confidence remained positive, with manufacturers expressing optimism about growth prospects over the coming year.
