India’s manufacturing sector gained momentum in September, supported by stronger demand, higher output and fresh orders. The HSBC Flash Manufacturing PMI rose to 57.7 from 54.3 in August.
Highlights
- Manufacturing activity climbed to a three-month high in September.
- HSBC Flash Manufacturing PMI rose to 57.7, up from 54.3 in August.
- Manufacturing output PMI increased to 60.9 from 55.8.
- Services PMI rose to 61.0 from 60.9.
- Composite PMI increased to 61.0 from 60.9.
New Delhi: India’s manufacturing sector gathered momentum in September 2026, with business activity reaching a three-month high amid stronger demand and an improvement in production, according to the HSBC Flash PMI data.
The HSBC Flash India Manufacturing Purchasing Managers’ Index (PMI) rose to 57.7 in September from 54.3 in August, indicating a stronger expansion in factory activity. A PMI reading above 50 indicates expansion, while a reading below 50 signals contraction.
Manufacturing output also recorded a sharp improvement. The Manufacturing Output PMI climbed to 60.9 from 55.8 in August. Meanwhile, the Services PMI edged higher to 61.0 from 60.9, while the Composite PMI also stood at 61.0, compared with 60.9 in August.
The improvement was supported by stronger demand conditions across the private sector. Companies reported faster growth in new orders, prompting firms to increase output and hiring.
Manufacturers saw a particularly strong rise in total new business during September. Service providers also reported stronger demand and stepped up marketing efforts to support order growth.
However, export demand remained a relatively weak spot. According to the report, the pace of export expansion was among the lowest in nearly three-and-a-half years, with the conflict in West Asia and weaker global demand weighing on overseas orders.
Input cost pressures also remained a concern. Firms reported higher expenses for raw materials and other inputs, while companies continued to manage uncertain global business conditions.
Overall, the September PMI figures indicate that domestic demand continued to support India’s manufacturing and services sectors, even as external demand faced pressure.
