India Factory Growth Eases to 54.7 in October as Export Orders Hit Six Month High

India factory growth slowed in October, even as export orders rose at their fastest pace in six months, according to the final HSBC India Manufacturing Purchasing Managers Index released on Monday, November 2, 2026.

The index, compiled by S&P Global, eased to 54.7 in October from 55.1 in September. The final reading was below the preliminary estimate of 54.9. A reading above 50 indicates growth, so the October result still pointed to expansion, at a slower pace than the month before.

This final manufacturing release is separate from the earlier flash reading for October, which had put manufacturing at 54.9.

Domestic demand cools, exports pick up

Growth slowed as domestic demand eased and hiring weakened, Reuters reported. New orders pulled back marginally from a seven month high in September, while new export orders accelerated to their fastest pace in six months.

Manufacturers reported higher export demand from markets including Bangladesh, Canada, Indonesia, Nepal, Oman, Saudi Arabia, Sri Lanka, the United Kingdom, the United States and the United Arab Emirates, according to the S&P Global release.

Pranjul Bhandari, Chief India Economist at HSBC, said in the release: "Strong international demand pushed growth of new export orders to a six-month high, supporting a robust rise in output."

Output growth lost some ground in October, the survey found.

Warehouses fill at a record pace

Manufacturers filled finished goods warehouses at a record pace in the survey more than 21 year history, Reuters reported, citing buoyant demand and efforts to prevent shortages. That stock building stands out in a month when the headline rate of growth eased, because firms were preparing goods for sale rather than simply cutting back.

Jobs and prices

Factory employment grew for a second straight month, but the pace slowed from September, with capital goods makers cutting staff.

Price pressures eased. Input cost inflation retreated to its lowest level since February. Selling price increases were the weakest in nearly four years, described in the release as the softest output price pressures in nearly four years.

Business confidence slipped from September and stayed below its long run average. Close to 18 percent of manufacturers expected production to increase over the coming year, according to the S&P Global release.

Taken together, the October survey shows a manufacturing sector still growing, led more by overseas orders than by home demand, with slower hiring and softer price rises than in September.