India manufacturing PMI slows to 54.7 in October
Export orders reached a six-month high despite a moderation in overall manufacturing activity growth.
India's manufacturing sector activity expanded at a slower pace in October 2026, with the HSBC India Manufacturing Purchasing Managers’ Index (PMI) falling to 54.7 from 55.1 in September, according to reports by The Hindu, ANI, and Times of India.
While the index moderated, it remained above the neutral mark of 50, indicating continued expansion. New export orders grew at their fastest rate in six months, driven by demand from markets including the U.S., U.K., Canada, Bangladesh, Indonesia, Nepal, Oman, Saudi Arabia, Sri Lanka, and the UAE.
Pranjul Bhandari, Chief India Economist at HSBC, said that strong international demand supported a robust rise in output. She noted that producers increased input inventories at the fastest pace in eight months to create buffers against potential shortages in a volatile global environment.
Cost pressures also weakened during the month. Although prices for certain energy and materials rose, the overall rate of input cost inflation dropped to its lowest level since February. Additionally, the increase in selling prices was the weakest in nearly four years.
Factory employment rose for the second straight month, though the pace of hiring slowed. Meanwhile, finished goods inventories grew at an unprecedented rate in the survey's 21-year history as companies worked to prevent shortages.
Despite the growth, business confidence declined from September and stayed below its long-run average. Approximately 18 per cent of manufacturers expect output to increase over the next year, supported by enquiries and demand for technology solutions.