The main impetus to manufacturing overall sales came from the domestic market. File (representational image)
| Photo Credit: Reuters
Activity in India’s manufacturing sector expanded at a faster rate in January 2026, rising from a two-year low in December 2025, driven by increases in new orders and buying levels, a private sector survey showed.
The HSBC India Manufacturing Purchasing Managers’ Index rose marginally from 55 in December 2025, the lowest it had been in two years, to 55.4 in January 2026.
“After losing growth traction at the end of 2025, Indian goods producers reported faster increases in new orders, output, employment and buying levels during January,” the report said.
It added that survey participants continued to mention that demand buoyancy, new business growth and tech investment were supporting production. The participants also said that demand strength and marketing efforts drove up sales to domestic and international clients.
However, Pranjul Bhandari, chief India economist at HSBC, said that business confidence remained relatively low.
“Despite faster growth in new orders, business confidence remains muted, and expectations for future output have declined to their lowest level since July 2022,” she said.
Published – February 02, 2026 12:22 pm IST
