Archive · 1 Oct 2026
India Manufacturing Growth Reaches Seven-Month High on Demand
Indian factories had a much stronger month in September.
A survey score called the PMI rose from 52.8 in August to 55.1.
A score above 50 means manufacturing activity is growing.
More customers in India and other countries ordered products from Indian factories.
This helped factories produce and sell more goods.
Factories also began hiring again after employment fell in August.
Businesses bought extra materials and stored more finished products because they expected future sales.
Factory owners became more confident about the months ahead.
Prices for materials and finished goods rose, but the increases were still mild compared with long-term averages.
India’s seasonally adjusted manufacturing PMI rose to 55.1 in September from 52.8 in August, a seven-month high.
Stronger domestic and export demand increased new orders, output and sales across electronics, food, pharmaceutical and textile products.
Export orders accelerated among customers in Brazil, Europe, the UAE and the US.
Factory employment resumed growth at its fastest pace since May after declining in August.
Manufacturers bought more materials and built inventories as business confidence reached a four-month high, while cost inflation remained historically modest.
- Who
- Around 400 Indian manufacturers surveyed by S&P Global for the HSBC India Manufacturing PMI, with commentary from HSBC Chief India Economist Pranjul Bhandari.
- What
- Manufacturing activity growth reached a seven-month high as orders, output, sales, hiring and inventories increased.
- When
- September, with survey data collected from September 7 to 24 and results reported on October 1.
- Where
- India, with stronger export demand reported from Brazil, Europe, the United Arab Emirates and the United States.
- Why
- Stronger domestic and overseas demand increased new orders, sales and production, while manufacturers anticipated continued demand.
Positive Signals
Cautions
Manufacturing momentum
Positive Signals
The September PMI of 55.1 marked the strongest improvement in factory activity in seven months, supported by stronger orders, output, sales and exports.
Cautions
Despite the September rebound, the July-September quarter’s average PMI was 53.8, its lowest for the comparable period since 2021, indicating relatively softer overall quarterly growth.
Business outlook
Positive Signals
Business confidence reached a four-month high as manufacturers cited new enquiries and expectations of favourable demand conditions.
Cautions
The final PMI was below the preliminary estimate of 55.7, indicating that the reported improvement was weaker than initially estimated.
Costs and prices
Positive Signals
Input-cost and selling-price inflation remained below their long-run or historical averages despite increasing in September.
Cautions
Prices for electronic components, pharmaceutical items and steel pushed input costs higher, while both input-cost inflation and selling-price growth accelerated from August.
- September PMI
- 55.1
- August PMI
- 52.8
- Preliminary estimate
- 55.7, higher than the final September reading
- PMI interpretation
- Readings above 50 indicate expansion, while readings below 50 indicate contraction
- Survey coverage
- Around 400 manufacturers
- Employment
- Hiring resumed at its fastest pace since May
- Business confidence
- Expectations for future output reached a four-month high
- Finished-goods inventories
- Increased for the third consecutive month, at the second-fastest pace in 11-and-a-half years, behind July
Sources
India’s manufacturing sector growth hits 7-month high in Sep on strong demand
Manufacturing PMI jumps to 7-month high of 55.1 in September on strong demand, hiring
Manufacturing activity rises to 7-month high in Sept, PMI shows
