India’s manufacturing activity continued to expand in October 2026, although the HSBC India Manufacturing Purchasing Managers’ Index (PMI) moderated to 54.7 from 55.1 in September, according to data released by S&P Global.
- The PMI remained above the neutral mark of 50, indicating continued expansion in the manufacturing sector. Strong domestic demand and new export orders, which recorded their fastest growth in six months, supported factory production.
- Input cost inflation eased to its lowest level since February, while the rise in selling prices was the weakest in nearly four years. Factory employment increased for the second consecutive month.
- Manufacturers increased input inventories at the fastest pace in eight months to prepare for potential supply shortages. However, business confidence remained subdued, with only 18% of manufacturers expecting output to increase over the next 12 months.
