The HSBC India Manufacturing PMI fell to 53.9 in March 2026 from 56.9 in February, slightly higher than the initial estimate of 53.8.
This represents the weakest improvement in business conditions in nearly four years, with factory output and new orders rising at the slowest pace since mid-2022, weighed down by cost pressures, intense competition and growing market uncertainty amid conflict in the Middle East.
Meanwhile, employment increased at the fastest rate in seven months as companies added employees, while purchasing inputs and inventories continued to expand, albeit at a slower pace.
Overseas sales also saw their strongest expansion since September 2025, supported by gains in multiple regions.
Regarding prices, input costs rose sharply to their highest level in 43 months, but output price inflation remained modest, reflecting companies’ efforts to absorb higher expenses.
Companies became more optimistic about production throughout the year, even as backlogs fell for the first time in nearly 18 months.
Source: Trade Economics
