Financial News: India Manufacturing Growth Rebounds In January

India Manufacturing Growth Rebounds In January

02/02/2026 - 01:52:00 (RTTNews)

(RTTNews) - India's factory activity growth bounced back in January from a 2-year low in December amid faster rises in factory orders and production, survey data from S&P Global showed on Monday.

The HSBC manufacturing Purchasing Managers' Index rose to 55.4 in January from 55.0 in December. A score above 50 indicates expansion in the sector.

Output grew at a quicker pace than in December on the back of demand buoyancy, new business growth, and tech investment. The growth in new orders rebounded as demand strength and marketing efforts drove sales to domestic and international clients higher.

Indian manufacturers continued to scale up workforce numbers in line with rising outstanding business volumes, and the pace of job creation was the quickest in three months.

On the price front, input prices rose at the fastest pace in four months due to higher costs for chemicals, copper, iron, jute, paper, steel and transportation. Nonetheless, output price inflation was the weakest in nearly two years as improved efficiency, better cost management, and market rivalry prevented goods producers from increasing their fees.

"Despite faster growth in new orders, business confidence remains muted, and expectations for future output have declined to their lowest level since July 2022," Pranjul Bhandari, Chief India Economist at HSBC, said.

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