India’s Manufacturing PMI Climbs to Four-Month Peak in February on Strong Domestic Demand

New Delhi:  India’s manufacturing sector strengthened in February, with the Purchasing Managers’ Index (PMI) rising to 56.9 from 55.4 in January, marking a four-month high. The improvement was driven by robust domestic demand, which boosted new orders and led to the sharpest expansion in production volumes in four months, according to data released by **S&P Global**.

The seasonally adjusted **HSBC India Manufacturing PMI** indicated a significant improvement in overall sector health.

Pranjul Bhandari, Chief India Economist at **HSBC**, noted that manufacturing activity accelerated in February, with output expanding at a quicker pace for the second consecutive month, supported by stronger domestic orders.

However, growth in new export orders continued to slow, extending a trend that began in mid-2025. This moderation somewhat constrained job creation within the manufacturing sector.

Manufacturers reported that buoyant demand, effective marketing initiatives, and rising client requirements sustained growth in new business intakes. The pace of expansion was historically strong and the fastest recorded since last October.

Production volumes increased at the quickest rate in four months, surpassing the long-term average. Respondents attributed the rise to efficiency gains, solid underlying demand, higher inflows of new work, and ongoing technological investments.

Input cost pressures remained moderate and largely unchanged from January. However, output price inflation edged higher and exceeded its long-run average.

The PMI measures overall business conditions based on indicators such as new orders, output, employment, supplier delivery times, and inventories of purchases.

While export growth slowed overall, companies that reported higher external sales cited stronger demand from Asia, Europe, the Middle East, and the United States.

The report highlighted that new export orders saw their slowest growth in 17 months during February, with the rate of expansion aligning more closely with its historical average.

With inputs from IANS