India’s manufacturing sector saw a slight slowdown in December, with the HSBC India Manufacturing Purchasing Managers’ Index (PMI) dropping to 55 from 56.6 in November. Despite this, the industry concluded 2025 on a positive note, maintaining growth above its long-term average.
The report highlighted that strong demand led to significant increases in new business and production. However, growth rates were tempered by competitive pressures and lower sales of specific products. Pollyanna De Lima, Economics Associate Director at S&P Global Market Intelligence, emphasized the positive impact of rising new business intakes on the sector.
While input costs rose marginally, the rate of charge inflation reached a nine-month low. New work intake increased notably, although at a slower pace compared to previous months. Output levels also expanded, albeit at a more moderate rate.
The report noted a decline in new export orders growth, with fewer companies reporting higher international sales in December. Indian manufacturers are optimistic about increased output in 2026, driven by improved demand from Asian, European, and Middle Eastern clients. The outlook is supported by advertising, positive demand trends, and new product launches.
