India’s manufacturing sector expanded at a faster pace in May 2026, with the Manufacturing PMI rising to a three-month high of 55.0, supported by strong domestic demand, increased production and higher purchasing activity.

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• India’s Manufacturing PMI rose to 55.0 in May 2026, the highest level in three months.
• PMI stood at 54.7 in April, indicating further improvement in manufacturing activity.
• A PMI reading above 50 signals expansion in the manufacturing sector.
• Strong domestic demand played a major role in supporting growth during May.
• New orders increased steadily, helping boost production levels across industries.
• Manufacturing output growth accelerated compared to the previous month.
• Export orders continued to grow, although at a slower pace than in April.
• Demand from Asia, Europe, Africa and West Asia supported export activity.
• Companies increased purchases of raw materials at the fastest pace in three months.
• Manufacturers built precautionary inventories amid uncertainty linked to West Asia tensions.
• Finished goods inventories rose for the second consecutive month.
• Input cost inflation remained among the highest levels seen in the past four years.
• Higher fuel, energy, transportation and material costs increased pressure on manufacturers.
• Output price inflation eased, indicating limited ability to pass rising costs to consumers.
• Manufacturing firms continued hiring workers and expanding employment opportunities.
• Business confidence remained positive despite ongoing global uncertainties.
• Companies expect cost pressures to ease later in the year as conditions stabilize.