The HSBC India Manufacturing PMI rose to 56.8 in January 2026 from 55.0 in December, marking the strongest improvement in operating conditions in three months, according to preliminary estimates. Factory output expanded at a faster pace, supported by stronger domestic and international demand, with new orders rising at the quickest rate in four months. Employment also increased modestly, reflecting renewed hiring to align resources with higher workloads, particularly at junior- and mid-level positions. Input purchases rose sharply, with firms spending more on materials including food, fuel, and steel, while suppliers’ delivery times improved. Input cost inflation accelerated but remained moderate by historical standards, and output price growth kept pace with rising input costs. Overall business confidence rose to a three-month high, supported by efficiency gains, robust demand, marketing initiatives, and favorable exchange rates.
