FX.co ★ India Manufacturing Growth Hits 4½-Year Low

The HSBC India Manufacturing PMI declined to 53.8 in March 2026 from 56.9 in February, undershooting expectations for only a marginal easing to 56.8, according to preliminary estimates. This points to the weakest expansion in manufacturing activity since September 2021, as output growth cooled amid softer domestic demand and heightened uncertainty linked to the Middle East conflict.

New orders increased only modestly, even as international sales surged at a record pace. Employment continued to rise at a moderate rate, underpinning ongoing capacity expansion. Firms also increased their input purchases and inventories, but at a slower pace than in February, while suppliers’ delivery times improved.

Input costs climbed at the fastest rate in 45 months, and output prices posted their strongest rise in seven months, underscoring persistent inflationary pressures. Nevertheless, manufacturers remained cautiously optimistic about the outlook for the coming year, citing planned efficiency gains, enhanced marketing efforts, and an expected pick-up in new client enquiries.