HSBC India Manufacturing PMI®
The HSBC India Manufacturing Purchasing Managers' Index (PMI) for October 2026 registered 54.7, indicating continued expansion in the manufacturing sector despite a slight decline from September's reading of 55.1. The index remained comfortably above the neutral 50.0 mark and exceeded its long-run average, signaling strong sector health.
Manufacturing output and new orders maintained sharp growth rates, though both saw softer increases compared to September. New business growth eased only marginally from its seven-month high in September and remained strong by historical standards, driven by favorable demand trends, new client wins, and successful marketing campaigns. The most significant development was in export orders, which grew at the fastest pace in six months, with companies reporting gains from a broad range of international markets including Bangladesh, Canada, Indonesia, Nepal, Oman, Saudi Arabia, Sri Lanka, the UK, US, and UAE.
Price pressures showed notable moderation across all three broad areas of India's manufacturing industry. Input cost inflation retreated to its lowest level since February, although survey members still reported higher prices for several materials and energy. Consequently, selling price inflation reached its weakest level in nearly four years, with producers raising prices only slightly to protect margins.
Employment saw a second successive monthly increase, though the pace of job creation was only slight and eased from the previous month. Capital goods producers reduced staffing, while growth was seen in other categories. Outstanding business volumes rose for the seventh consecutive month, though the accumulation pace was fractional.
Inventory building was particularly notable, with finished goods stocks rising at an unprecedented pace as firms made deliberate efforts to accommodate buoyant demand and prevent shortages. Input inventories also increased more quickly, with the rate of accumulation reaching an eight-month high. Input purchasing growth continued for the sixty-fourth straight month, though at the weakest pace over this period.
Despite continued demand growth, business confidence slipped from September and remained below its long-run average. Only close to 18% of manufacturers anticipated higher output over the coming year, while the remainder were neutral. Positive expectations were underpinned by new client enquiries and demand for industrial automation and technology solutions.
The survey data was collected from 9-26 October 2026 from a panel of around 400 manufacturers stratified by detailed sector and company workforce size based on contributions to GDP.