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India's manufacturing PMI eases to 55.0 in December

02 Jan 2026 Evaluate

India's manufacturing industry witnessed a slowdown in the growth during the month of December, on the back of competitive pressures and subdued sales of specific items. According to the survey report, the seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) eased to 55.0 in December 2025 from 56.6 in November 2025, signalling the weakest improvement in the health of the sector in two years. However, the latest reading remains comfortably above the neutral mark of 50.0. 

The report further said that intakes of new work rose at a sharp rate, albeit one that was the weakest since December 2023. Similarly, output levels expanded at the slowest pace since October 2022. Part of the slowdown in total sales reflected a softer increase in international orders. New export orders rose to the least extent in 14 months. Where growth was signalled, panellists cited better demand from clients in Asia, Europe and the Middle East. A softer increase in new business intakes prompted companies to limit the extent to which inputs were purchased. Buying levels still rose substantially, but the rate of growth retreated to a two-year low.

It further said December data indicated another increase in input costs at Indian manufacturers, which they attributed to greater prices for bamboo, chemicals, glass, leather and packaging. Little-changed from November, however, the rate of inflation was below its long-run average and among the lowest seen in 2025. Output prices likewise increased at a softer pace, one that was the least pronounced in nine months. 


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