India's Manufacturing Sector Growth Slows Down In February, Check PMI Data Here

The seasonally adjusted HSBC India Manufacturing PMI showed that the sector slowed down to its weakest since December 2023 in the month, however, it still continued to improve further.

India's manufacturing activity declined to 56.3 in February, slipping from the 57.7 registered a month earlier in January. The seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) showed that the sector slowed down to its weakest since December 2023 in the month, however, it still continued to remain on the trajectory for improvement.

The survey, compiled by S&P Global, found that output and sales growth remained higher in the sector. Positive demand at the domestic and international level encouraged firms to hike their purchasing activity and recruit more workers at above-trend rates. 

Demand Remained Strong

Business conditions improved across all the monitored sub-sectors, namely consumer, intermediate, and investment goods. Output climbed halfway through the final quarter of the current fiscal year, and extended the current growth streak to 44 months.

The survey found that manufacturers reported consistent improvement in demand, tech investment, and the commissioning of new projects. The data from Febraury pointed out 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’. 

Manufacturers continued to capitalise on the strong demand globally for their goods. While, the pace of expansion remained softer than January, it continued to be sharp.

Employment Creation

As such, companies hired more workers and extended the current period of employment growth to a year. The rate of job creation remained the second-best so far, only behind the same recorded in January 2025. According to the survey, one in ten firms displayed greater recruitment activity, while only one per cent of the companies cut down jobs.

Pranjul Bhandari, Chief India Economist, HSBC, explained, "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, withnearly one-third of survey participants foreseeing greater output volumes in the year ahead. Although output growth slowed to the weakest level since December 2023, overall momentum in India’s manufacturing sector remained broadly positive in February."