Output And New Orders Strengthen

The HSBC India Manufacturing Purchasing Managers' Index, compiled by S&P Global, increased to 56.9 in February from 55.4 in January. The reading was below the preliminary estimate of 57.5. A PMI reading above 50 indicates expansion.

The survey showed that output expanded for a second consecutive month at a faster pace. New orders rose at their strongest rate since October, supporting higher production volumes. Respondents cited firm domestic demand, efficiency gains and technology investment as factors supporting output growth, according to S&P Global.

Export Growth Eases

New export orders increased at the slowest pace in 17 months, extending a moderation trend that began in mid-2025, the survey showed. The data collection period ran from February 9 to February 23.

The survey period followed a reduction in U.S. tariffs on Indian goods to 18% from 50%, according to official announcements. Subsequently, U.S. President Donald Trump announced new global tariffs after a Supreme Court ruling that struck down certain levies, as reported by international media.

Prices And Employment

Input cost inflation remained moderate and unchanged from January, while output prices rose at the fastest pace in four months as firms passed on higher costs amid solid demand, according to S&P Global.

Employment increased to a four-month high, although the pace of hiring was marginal. Around 4% of surveyed firms reported adding staff, while the majority indicated no change in workforce levels.

Separate official data showed India’s economy grew 7.8% in the October–December quarter, with manufacturing expanding 13.3%, according to government figures. For the fiscal year ending March 31, 2026, the economy is projected to grow 7.6%, as per official estimates.

With the PMI at 56.9 in February and new orders strengthening, manufacturing activity recorded its fastest expansion in four months, according to the latest S&P Global survey.