India’s manufacturing sector continued to grow in January, with the HSBC Manufacturing Purchasing Managers’ Index (PMI) rising marginally to 55.4 in January from 55.0 in December 2025, according to the data compiled by S&P Global.
The rebound came after the seasonally adjusted PMI touched a two-year low of 55.0 in December 2025, signalling a stronger improvement in operating conditions. The reading, however, came in below the flash estimate of 56.8 released in late January, though it remained above the long-run average.
The overall growth remained strong, with the index staying well above the neutral mark. A reading above 50 indicates economic expansion, while one below 50 shows contraction in the manufacturing or construction sectors. A reading of exactly 50 signifies no change.
Pranjul Bhandari, chief India economist at HSBC, noted: “Indian manufacturing firms saw a rebound in January, driven by increased new orders, output, and employment. Input costs rose moderately, while the pace of growth in factory-gate prices eased, resulting in slight margin pressure for manufacturers. Despite faster growth in new orders, business confidence remains muted, and expectations for future output have declined to their lowest level since July 2022.”
India’s flash PMI rises to 59.5 in Jan
The HSBC Flash India Composite Output Index, which measures the combined performance of India’s manufacturing and services sectors, rose to 59.5 in January from 57.8 in December 2025.
This seasonally adjusted index, which tracks month-on-month changes in the combined output of the two sectors, showed similar growth rates in both the manufacturing and services sectors.
