India’s Manufacturing Activity Remains Strong; PMI at 54.2 in June Despite Moderation in Growth
New Delhi, July 1 (Forever News): India’s manufacturing sector remained firmly in expansion mode in June, with the HSBC India Manufacturing Purchasing Managers’ Index (PMI) registering 54.2, reflecting sustained growth in factory activity even as the pace of expansion eased from the previous month.
India’s Manufacturing Activity Remains Strong; PMI at 54.2 in June Despite Moderation in Growth.
The seasonally adjusted PMI remained comfortably above the 50-point threshold, which separates expansion from contraction, signalling that the country’s manufacturing sector continues to maintain positive momentum amid evolving domestic and global market conditions.
According to the latest HSBC PMI survey, growth in new orders, production, exports and employment moderated during June after witnessing strong gains in previous months. While many manufacturers continued to report healthy demand, others pointed to cautious customer spending and heightened market competition, resulting in a slower pace of business expansion.
Export demand also remained positive, reinforcing the resilience of India’s manufacturing sector, although growth in overseas orders softened compared to May.
Commenting on the survey, Pranjul Bhandari, Chief India Economist at HSBC, said the June PMI reflects continued expansion, though at a more measured pace.
“The moderation suggests demand has cooled slightly after the earlier surge linked to the Middle East conflict. Growth slowed across output, new orders, export orders and employment, while both the input and output price indices declined, pointing to softer inflationary pressures as geopolitical disruptions begin receding,” she said.
One of the encouraging trends highlighted in the survey was the easing of input cost and output price inflation, indicating that price pressures on manufacturers are beginning to soften. Businesses also reported slower purchasing activity, leading to a more measured accumulation of raw material inventories, while inventories of finished goods declined as companies aligned production with current demand.
Despite the moderation in overall growth, manufacturers continued to add jobs during June, although hiring activity slowed compared to previous months.
The latest data suggests that India’s manufacturing sector remains on a stable growth trajectory, supported by resilient domestic demand, improving export performance and easing inflationary pressures. Economists believe the moderation reflects a return to more sustainable growth levels following the temporary demand surge triggered by geopolitical disruptions earlier this year.
PMI Snapshot – June 2026
- Manufacturing PMI: 54.2
- Above 50: Indicates Expansion
- New Orders: Continued Growth, but Slower
- Exports: Positive, with Moderation
- Employment: Increased at a Slower Pace
- Input Costs: Inflation Eased
- Output Prices: Softer Inflation
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Overall Outlook: Manufacturing Sector Continues to Expand
