India Manufacturing PMI
India’s manufacturing sector lost momentum in July as the HSBC Manufacturing Purchasing Managers’ Index (PMI) eased to 53.5, its weakest reading since August 2021. Despite the slowdown, the index remained comfortably above the 50-mark, indicating that factory activity continues to expand rather than contract.
The softer reading reflects weaker domestic demand and slower growth in new orders, although export demand remained relatively resilient.
Compared with major advanced economies, India’s manufacturing performance lagged behind the United States and Japan during July.
Japan recorded its strongest factory expansion in more than a decade, while India’s pace moderated amid softer customer demand and increased market competition.
Global manufacturers also faced higher costs linked to geopolitical tensions in the Middle East, rising energy prices and weaker international demand. These factors weighed on industrial activity across many economies.
Although India’s manufacturing momentum slowed, it continued to outperform several Asian peers.
China’s official manufacturing PMI slipped below the 50-point threshold, signalling contraction, while India’s reading remained firmly in expansion territory.
Export orders from markets including the UAE, Canada, South Africa, Indonesia and Thailand helped cushion the slowdown in domestic demand. Economists believe India’s manufacturing sector remains fundamentally resilient despite global headwinds and slowing consumer demand.
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