India’s manufacturing sector activity accelerated sharply in December 2025, with the S&P Global India Manufacturing Purchasing Managers’ Index (PMI) rising to 57.8, marking a 14-month high and signaling robust industrial expansion.
## PMI Highlights
The key PMI metrics paint a positive picture for Indian manufacturing:
– December 2025 PMI: 57.8 (14-month high)
– November 2025 PMI: 56.5
– PMI above 50 indicates expansion
– Consecutive months of expansion: 31
## Growth Drivers
New order growth reached its fastest pace in over a year. Strong domestic demand, coupled with improving export orders, drove the expansion.
– New Orders Index: 59.2
– New Export Orders: 53.8
– Output Index: 58.5
– Employment Index: 52.4
## Sectoral Performance
Capital goods and consumer goods segments led the growth, while intermediate goods manufacturers also reported strong demand.
## Inflation Pressures
Input cost inflation eased to a 6-month low, providing relief to manufacturers. However, output prices continued to rise as businesses passed on higher energy costs to consumers.
## Employment Growth
Hiring activity expanded for the 10th consecutive month, with manufacturers adding workforce to meet growing order books. The employment sub-index stood at 52.4.
## Expert Commentary
“The December PMI reading underscores the resilience of Indian manufacturing despite global headwinds. Strong domestic consumption and government infrastructure spending continue to support industrial growth,” said a senior economist.
## Outlook
The manufacturing sector is expected to maintain momentum in Q1 2026, supported by pre-budget optimism and sustained domestic demand.
