India’s Manufacturing PMI Rises To 55.1 in September 2026 as New Orders Recover

India’s manufacturing activity picked up in September 2026, after slowing for three straight months, as per news reports. The HSBC India Manufacturing PMI rose to 55.1 from 52.8 in August 2026, according to the survey compiled by S&P Global. 

The September reading was the strongest since February 2026, although it came below the preliminary estimate of 55.7. A reading above 50 indicates an expansion in manufacturing activity. 

New Orders Give Factories a Lift 

New orders increased at their fastest pace since February, with electronic, food, pharmaceutical and textile products seeing stronger demand. Export orders also improved, with manufacturers reporting more business from Brazil, Europe, the UAE and the US. 

Factory output followed the improvement in orders. Its rate of growth reached the strongest level since May as companies responded to the higher level of business. 

Manufacturers also stepped up purchases of materials and added to their stocks as they prepared for expected sales. 

Factory Hiring Picks Up Again 

The improvement in business activity also showed up in employment. Factory hiring returned to growth in September after employment declined in August. 

The September increase was the strongest since May. The August decline had been the first fall in factory employment in two-and-a-half years. 

Business Confidence Improves 

As per the report, manufacturers became more positive about their business prospects, with confidence reaching a four-month high. New enquiries and expectations of continued demand supported the improvement. 

At the same time, input costs increased at a faster pace than in August, mainly due to higher prices for electronic components, pharmaceutical items and steel. Selling prices also rose, although the increase remained modest. 

Read More: Electric Two-Wheeler Sales Cross 15 Lakh in Nine Months of 2026! 

Conclusion 

September brought a clear improvement in India’s factory activity, with stronger orders feeding into output, inventories and employment. The pickup in business confidence also came alongside higher input costs, keeping the inflation picture relevant for manufacturers. 

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