Archive · 3 Aug 2026
India Manufacturing PMI Falls to Five‑Year Low in July
India’s factories are making less stuff than before.
A survey called the PMI showed a score of 53.5 in July, the lowest in five years.
This means new orders for goods are coming in slower.
Workers are being hired less quickly, too.
But some good news: more orders are coming from other countries like Canada and the UAE, which helps keep factories busy.
The supply of parts is getting better, but worries about the Middle East could still slow things down.
Overall, the factories are still growing, but at a slower pace.
India’s manufacturing PMI fell to 53.5 in July, the lowest since August 2021 and a five‑year low.
New business orders grew at the second‑slowest rate in over four years, weakening demand.
Employment growth slowed to its slowest pace in 29 months, with job creation weakening for the third straight month.
Supply‑chain conditions improved, with input lead times shortening, but tensions in the Middle East raise doubts about durability.
Export orders rose sharply, with gains from Canada, Egypt, Indonesia, Kenya, Nepal, South Africa, Thailand and the UAE, boosting business sentiment.
- Who
- Indian manufacturing firms and purchasing managers surveyed by HSBC and S&P Global
- What
- Manufacturing PMI fell to 53.5, indicating slower growth
- When
- July 2023
- Where
- India
- Why
- Slower new orders, challenging market conditions, and Middle East tensions affecting supply chains
- PMI value
- 53.5
- Month
- July 2023
- Lowest since
- August 2021
- New orders growth rank
- Second‑slowest in 4+ years
- Employment growth rank
- Slowest in 29 months
- Supply‑chain improvement
- Shortened input lead times
- Export orders increase
- Gains from Canada, Egypt, Indonesia, Kenya, Nepal, South Africa, Thailand, UAE
Sources
India's manufacturing sector growth falls to five-year low in July amid difficult market conditions: Survey
India's Manufacturing PMI Dips to 5-Year Low in July, Signalling Market Headwinds
Manufacturing growth near 5-year low in July, PMI shows
India's manufacturing activity slips to near five-year low in July but signals solid growth