India's July manufacturing PMI drops to near five-year low

India's manufacturing sector expanded at its slowest pace in nearly five years in July, according to a private survey released on Monday, August 3, 2026. The seasonally adjusted HSBC India Manufacturing Purchasing Managers' Index (PMI) fell to 53.5 from 54.2 in June, marking its lowest reading since August 2021 and slipping below the long-run series average of 54.2. A reading above 50 indicates expansion.

The survey, compiled by S&P Global from responses from about 400 manufacturers, pointed to a broad cooling of growth across key metrics including total sales, input purchasing, and employment. The rate of growth in new orders was the second-weakest in over four years, with panel members citing increasingly challenging market conditions and reduced client interest for key items as factors curbing sales.

A notable bright spot was a strengthening in new export orders, which increased at their fastest pace since April. Firms reported gains from a diverse set of markets including Canada, Egypt, Indonesia, Kenya, Nepal, South Africa, Thailand, and the United Arab Emirates. Output also continued to rise, supported by this resilient overseas demand.

On the employment front, job creation...