Manufacturing activity surges to four-month high of 56.9 in February as factory momentum strengthens

Manufacturing PMI in February

India’s manufacturing activity picked up to a four-month high in February, signalling improving industrial momentum even as overall economic growth moderated during the fiscal year.

The manufacturing Purchasing Managers’ Index (PMI) rose to 56.9 in February, up from 55.4 in January, marking the strongest expansion since October and reversing the softness seen toward the end of 2025. A reading above 50 indicates expansion in activity.

Manufacturing offsets broader growth moderation

The improvement in factory activity comes after India’s economic growth eased to 7.8 percent in the October–December quarter, according to new GDP series data released on February 27. Growth had been revised higher to 8.4 percent in Q2, while the first quarter estimate was lowered to 6.7 percent, indicating uneven momentum through the year.

Manufacturing emerged as a key bright spot in the latest GDP numbers. The sector expanded 13.3 percent year-on-year in Q3, accelerating from 13.2 percent growth in the previous quarter.

The rise in PMI readings in February suggests that this manufacturing strength may be extending into the final quarter of the fiscal year.

Growth outlook steady

For the full year, the Indian economy is expected to grow around 7.6 percent, implying that activity in the January–March quarter is likely to remain broadly aligned with current trends rather than see a sharp acceleration.