India's manufacturing sector activity growth falls to 5-year low in July amid challenging market condition: PMI
India's manufacturing sector growth slowed to a five-year low in July, with the HSBC India Manufacturing PMI falling to 53.5. The decline is attributed to challenging market conditions and a weakening in new business orders and employment growth.
Why it matters
As a key economic indicator, the manufacturing slowdown suggests potential headwinds for India's broader economic growth trajectory.
India's manufacturing sector activity growth fell to a five-year low in July, due to slower rise in new business orders amid increasingly challenging market conditions, a monthly survey said on Monday (August 3, 2026).
The seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index, fell from 54.2 in June to 53.5 in July — the lowest since August 2021 and below the long-run series average of 54.2.
The HSBC India Manufacturing Purchasing Managers’ Index (PMI) is a gauge of overall conditions derived from measures of new orders, output, employment, supplier delivery times and stocks of purchases.
In the Purchasing Managers' Index (PMI) parlance, a print above 50 means expansion, while a score below 50 denotes contraction.
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