India’s Private Sector PMI Hits High on Manufacturing Boom February 2026
India’s private sector activity accelerated sharply in February 2026, driven by robust manufacturing growth and surging new orders, as per the HSBC PMI survey. The composite output index rose to 57.5 from January’s 55.7, marking the strongest expansion since November, fueled by heightened domestic and international demand.
Total new orders grew at the fastest pace in months, attributed to strong local tourism, marketing efforts, and export gains—the quickest in five months. Manufacturers led with output at a four-month high, while services new business dipped to a 13-month low but still outpaced manufacturing in exports. The manufacturing PMI climbed to 57.5, services steady at 58.4.
Improved sales spurred faster hiring and lifted one-year business optimism to its highest in a year. However, inflationary pressures intensified, with input costs rising at the quickest rate in 15 months—the sharpest in services in 2.5 years—prompting output price hikes to a 10-month high. Retail inflation hit 2.75% last month after base year updates.
This robust growth amid rising costs likely keeps the Reserve Bank of India cautious, holding rates at 6.25% through 2026 per Reuters polls. Strong demand signals resilience, but cost pass-throughs challenge margins. Infrastructure firms like SEPCI reported order books at ₹10,455 crore, highlighting sector strength.
Hindustan Unilever plans ₹2,000 crore investment in premium manufacturing, while Dr Reddy’s acquired hormone therapy trademarks, boosting capabilities. These developments position India’s industries for sustained momentum despite global headwinds.
