Mumbai, Jan 2 India’s manufacturing activity continued to expand in December, albeit at a slower pace, as HSBC India Manufacturing Purchasing Managers’ Index (PMI) eased to 55 in December from 56.6 in November, a report showed on Friday.
The report compiled by S&P Global said that despite the moderation in growth, HSBC India Manufacturing PMI, held above its long-run average and the industry “wrapped up 2025 in good shape”.
It said that positive demand continued to underpin sharp increases in new business intakes and production, but expansion rate eased due to competitive pressures and subdued sales of specific items.
"Even with growth momentum easing, India's manufacturing industry wrapped up 2025 in good shape. The sharp rise in new business intakes should keep companies busy as we head into the final fiscal quarter, and the lack of major inflationary pressures could continue to support demand,” said Pollyanna De Lima, Economics Associate Director at S&P Global Market Intelligence.
The upturn in buying levels was the least pronounced in two years and like the past two months, input costs rose at a historically negligible pace, the report said. The rate of charge inflation eased to a nine-month low, the research agency noted.
Intakes of new work rose at a sharp rate, albeit one that was the weakest since December 2023. Similarly, output levels expanded at the slowest pace since October 2022.
Pollyanna noted a steady spell of softer growth in new export orders, with number of companies signalling higher international sales in December halved to the average for 2025.
“With Indian manufacturers facing less intense cost pressures than elsewhere, many will be hoping that competitive pricing can help bring in new business from other regions in the new year," Pollyanna added.
The report cited better demand from clients in Asia, Europe and the Middle East and Indian manufacturers foresee an increase in output during 2026.
The firm cited advertising, positive demand trends and new product releases as tailwinds to the outlook, but some firms were concerned about competitive pressures and market uncertainty.
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