New Delhi: After a strong start in 2025, Indian manufacturers witnessed a 14-month low of 56.3 in February from 57.7 in January due to decline in new orders and production momentum in the month. Despite the dip, the manufacturing activities remained in expansionary territory and the rates of expansion in output and sales remained elevated in the context of the survey’s 20-year history, a private survey showed on Monday.The survey conducted by the seasonally-adjusted HSBC India Manufacturing Purchasing Managers’ Index or PMI said that although softer than January’s near 14-year high, the pace of expansion was sharp. In PMI parlance, a print above 50 means expansion, while a score below 50 denotes contraction.The survey, however, noted that favourable domestic and international demand prompted firms to increase purchasing activity and hire extra workers. “The new export orders rose strongly in February, as manufacturers continued to capitalise on robust global demand for their goods,” the survey said.Commenting on the survey, Pranjul Bhandari, chief India economist at HSBC said that India recorded a 56.3 manufacturing PMI in February, down slightly from 57.7 during the prior month, but still firmly within expansionary territory. Robust global demand continued to boost growth in the Indian manufacturing sector, which increased its purchasing activity and employment,” he said.“Business expectations also remained very strong, with nearly one-third of survey participants foreseeing greater output volumes in the year ahead. Although output growth slowed to the weakest level since December 2023, overall momentum in India’s manufacturing sector remained broadly positive in February,” the economist added.On the employment front, the survey also noted that manufacturers continued to expand their workforce numbers in February. “The rate of job creation was the second-best in the series’ history, behind only that recorded in January. One-in ten firms signalled greater recruitment activity, while 1 percent of companies shed jobs,” the survey said.On the domestic macroeconomic front, the Indian economy grew by 6.2 per cent in the December quarter, recovering sequentially from seven-quarter lows, but the expansion came in lower than last year. For the full 2024-25 fiscal (April 2024 to March 2025), the government now pegs GDP growth at 6.5 per cent, marginally higher than its initial estimate of 6.4 per cent but below the revised growth rate of 9.2 per cent for 2023-24.
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