Key Takeaways
- The HSBC India manufacturing PMI dipped to 56.3 in February 2025, a 14-month low.
- The Indian manufacturing sector growth slowed to the weakest since December 2023.
- New export orders rose strongly in February, with manufacturers capitalising on robust global demand for their goods.
India’s factory activities continued to be in expansionary mode in February 2025, but the pace of growth slowed to the weakest since December 2023, a private survey showed on Monday.
The HSBC India manufacturing purchasing managers’ index (PMI) compiled by S&P Global fell to 56.3 in February 2025 from 57.7 in the previous month.
A PMI print below 50 means contraction, while above it shows expansion in activities.
Loss of growth momentum in new orders and production was one of the reasons for the decline in manufacturing PMI during February this year.
“India recorded a 56.3 manufacturing PMI in February, down slightly from 57.7 during the prior month, but still firmly within expansionary territory. Robust global demand continued to boost growth in the Indian manufacturing sector, which increased its purchasing activity and employment. Business expectations also remained very strong, with nearly one-third of survey participants foreseeing greater output volumes in the year ahead,” said Pranjul Bhandari, Chief India Economist at HSBC.
The HSBC India Manufacturing PMI is compiled by S&P Global from responses to questionnaires sent to purchasing managers in a panel of around 400 manufacturers. It is one of the closely-watched high-frequency data by economists, markets and policy-makers.
The February survey data showed a forty-fourth consecutive rise in new business intakes, which panel members linked to strong client demand and efforts to price better than their competitors.
“The overall pace of growth receded to the slowest since December 2023, but was above its long-run average,” the survey noted.
As per the survey, new export orders rose strongly in February this year as manufacturers continued to capitalise on robust global demand for their goods. Although softer than January’s near 14-year high, the pace of expansion was sharp.
“In response to the upturn in new orders, manufacturers continued to expand their workforce numbers in February, extending the current period of employment growth to a year. The rate of job creation was the second-best in the series history, behind only that recorded in January,” the survey said.
