FX.co ★ India Manufacturing Growth Picks Up in January

In January 2026, the HSBC India Manufacturing PMI climbed to 56.8 from 55.0 in December. This increase indicates the most robust improvement in manufacturing conditions seen in the last three months, based on preliminary estimates. The acceleration in factory output was driven by heightened demand both domestically and internationally, with new orders growing at their fastest rate in four months. Employment saw a slight uptick as companies resumed hiring to meet increased workloads, mostly targeting junior and mid-level positions. Firms substantially increased their input purchases, investing more in essential materials such as food, fuel, and steel, while suppliers managed to reduce delivery times. Although input cost inflation rose, it remained moderate compared to historical levels, with output prices adjusting similarly to meet the input cost increases. Overall, business confidence reached its highest point in three months, buoyed by improvements in efficiency, strong demand, aggressive marketing strategies, and beneficial exchange rates.