India’s manufacturing activity moderated marginally in October 2026, with the HSBC India Manufacturing Purchasing Managers’ Index (PMI) declining to 54.7 from 55.1 in September, according to data released by S&P Global.
Despite the slight decline, the index remained comfortably above the neutral mark of 50.0, indicating continued expansion in the manufacturing sector. It also stayed above its long-term average, reflecting sustained growth momentum.
Export Order Growth Reaches Six-Month High
The report highlighted continued strength in new business, with new export orders expanding at their fastest pace in six months. Indian manufacturers reported increased demand from several international markets, including Bangladesh, Canada, Indonesia, Nepal, Oman, Saudi Arabia, Sri Lanka, the United Kingdom, the United States and the UAE.
The improvement in export demand points to sustained international appetite for Indian manufactured goods, supporting the country’s export-oriented manufacturing sector.
Price Pressures Ease
The survey also indicated a moderation in price pressures during October, providing some relief to manufacturers amid continued business expansion.
Overall, while India’s manufacturing growth slowed slightly compared with September, strong new business inflows, improving export demand and easing price pressures continued to support the sector’s positive outlook.