India’s Manufacturing PMI Hits 56.9 in February – Signals Strong Factory Growth

India’s Purchasing Managers’ Index (PMI) for manufacturing climbed to 56.9 in February 2026 from 55.4 in January, signaling robust expansion in factory activity and marking a four-month high. The improvement reflects accelerated output growth, stronger domestic demand, and rising new orders, though growth in new export orders moderated to the slowest pace in 17 months.

The February 2026 manufacturing PMI reading offers compelling evidence that India’s industrial engine remains in strong operational condition. At 56.9, the index sits comfortably in expansion territory (anything above 50 signals growth), indicating that factory activity is not merely recovering but accelerating.

Key Developments

Manufacturing PMI Rises to 56.9

The HSBC India Manufacturing PMI rose to 56.9 in February 2026 from 55.4 in January, representing a 1.5-point improvement. The February reading marks the highest PMI reading in four months, indicating sustained and accelerating manufacturing momentum.

Factory Output Growth Accelerates

Output growth expanded at the fastest pace in four months, driven by robust domestic demand. Companies reported strong order intake from domestic customers, reflecting confidence in India’s economic trajectory and consumer demand resilience.

New Orders Growth Strongest Since November

New orders rose at the fastest pace since November 2025, with growth concentrated in domestic orders. This suggests that Indian manufacturers are experiencing strong order backlogs and production needs despite moderation in export demand.

Employment Expansion Continues

Employment rose modestly but registered the fastest pace in four months. Firms hired to manage higher workloads and increased production requirements, indicating business confidence and expectations of sustained demand.

Input Costs Remain Moderate

Input cost inflation remained moderate and unchanged from January levels. While raw material prices have seen some volatility due to global trade dynamics, manufacturing input cost pressures remain manageable, supporting profitability.