India manufacturing growth hit four-month high in the month of February 2026, as a substantial improvement in domestic demand for Indian goods fuelled new order intakes and spurred the greatest upturn in production volumes. According to the survey report, the seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) surged to 56.9 in February from 55.4 in January, indicating a stronger improvement in the health of the sector.

The report further noted that efficiency improvements, healthy underlying demand, rising intakes of new work and tech investment collectively boosted production volumes. With total new orders continuing to expand sharply, manufacturers in India purchased additional materials to supplement production and add to inventories. Buying levels rose at the fastest pace in three months.

Concurrently, pre-production inventories increased to a greater extent in February. The rate of accumulation was sharp and well above its long-run trend. In response to increasing workloads, firms stepped up input purchasing, lifted their inventories and hired extra staff. Further, companies sought to protect their margins from cost increases and lifted selling prices once again. However, international sales expanded at a comparatively mild pace, and one that was the weakest in close to a year-and-a-half.