The HSBC India Manufacturing PMI rose to 55.4 in January 2026 from 55.0 in December, but was revised lower from the initial estimate of 56.8. The reading still indicates a solid improvement in operating conditions at the start of the year. Factory output expanded at a faster pace, supported by robust domestic demand, while new orders also increased, driven mainly by the domestic market, with a modest rise in exports. Employment rose slightly, the fastest pace in three months, as firms hired to meet higher workloads. Input purchases and inventories expanded, reflecting greater production needs and precautionary buying, while input costs rose at the fastest pace in four months, albeit modestly by historical standards. Output prices increased moderately, constrained by competitive pressures and efficiency gains. Lastly, business confidence fell to a three-and-a-half-year low, with only 15% of firms expecting output growth over the year.
