FX.co ★ India’s Manufacturing Momentum Eases in March as HSBC PMI Slips to 53.8

India’s manufacturing sector expanded at a slower pace in March 2026, with the HSBC India Manufacturing Purchasing Managers’ Index (PMI) easing to 53.8 from 56.9 in February 2026. The latest reading, updated on 24 March 2026, indicates that while factory activity continues to grow, the momentum has cooled compared to the previous month.

The March figure remains above the 50-point threshold that separates expansion from contraction, signaling ongoing growth in manufacturing output. However, the decline from February’s 56.9 suggests a moderation in the pace of improvement, which may reflect softer demand conditions or a more cautious production environment.

Investors and policymakers will be watching subsequent monthly readings closely to assess whether March’s slowdown is a temporary pause after robust gains, or an early signal of a more sustained loss of momentum in India’s manufacturing recovery.