India’s manufacturing sector continued expansion but at its slowest pace in five years in August 2026 amid softer demand conditions, which subsequently led to weaker increases in buying levels and stocks, as well as a mild decline in employment. According to the survey report, the seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) eased from 53.5 in July to 52.8 in August.
The survey report showed that new business increased at a marked rate but one that was the slowest for five years, amid challenging market conditions and subdued appetite for some products. Export sales also rose further, with gains reported from markets including Australia, Germany, mainland China, Spain, Thailand and the US. However, growth of international orders eased from July.
Production volumes at Indian manufacturers continued to rise strongly in August, but growth eased to its weakest level for five years. Besides, the softer sales environment was reflected in workforce and purchasing decisions. Manufacturing employment fell for the first time in two-and-a-half years, though the rate of decline was only fractional. Meanwhile, input cost pressures continued to ease, and manufacturers responded by raising selling prices more modestly.
