India Manufacturing PMI October 2026: Index Falls to 54.7, Export Orders Reach Six-Month High

Manufacturing activity in India continued to grow in October 2026, but growth slowed slightly. India’s manufacturing purchasing managers’ index (PMI) fell to 54.7 in October 2026 from 55.1 in September 2026. The index remains above the neutral 50 mark, meaning manufacturing activity is growing. However, new export orders grew to a six-month high due to strong global demand. On the other hand, input inflation fell along with price increases.

What is the Purchasing Managers’ Index (PMI)?

The Purchasing Managers’ Index (PMI) is an economic indicator released each month showing how business activity has changed. The index gathers information from purchasing managers and gives an insight into production, new orders, employment, stock levels, supplier deliveries, and other factors.

It is collated by S&P Global and covers a range of economies. Including India. The index gives an early indicator of economic trends. If the number is above 50, it shows the economy is growing; if below, then it is contracting. If the number is exactly 50, there has been no change.

How PMI is Calculated?

There are five weighted elements that go into calculating the PMI for manufacturing,

• New Orders – 30%
• Output – 25%
• Employment – 20%
• Supplier Deliveries – 15%
• Purchases – 10%

The Supplier Deliveries element is reversed.

Key Highlights of India’s Manufacturing PMI in October 2026

The survey shows that Indian manufacturing continued to grow in October 2026 with strong export demand.

Key highlights include,

• Overall manufacturing PMI fell to 54.7 from 55.1.
• Export orders grew the fastest in six months.
• Factory output rose strongly but slowed.
• Input inflation fell to its lowest level since February 2026.
• Selling Prices rose the least in almost four years.
• Input Stock levels rose the fastest in eight months.
• Factory employment rose for the second month in a row.
• Confidence fell from September and is below the long-term average.
• Around 18% of manufacturers expect output to rise over the next 12 months.

Export Orders at Six Month High

Global demand continues to be a key factor in driving growth in Indian manufacturing. New export orders rose at the fastest rate in six months due to positive demand, new customers and effective marketing.

Indian manufacturers reported increased demand from a range of foreign countries including,

• Bangladesh
• Canada
• Indonesia
• Nepal
• Oman
• Saudi Arabia
• Sri Lanka
• United Kingdom
• United States
• United Arab Emirates (UAE)

This helped to increase factory output, but growth slowed.

Input Costs and Selling Prices

Manufacturers saw a reduction in overall cost pressures in October 2026. Input inflation fell to its lowest level since February, despite some raw material costs increasing.

Selling Prices rose at the slowest rate in almost four years. Meaning manufacturers are facing lower pressure to increase prices.

Both input and output pressures were seen to ease across all three broad industry sectors.