India’s PMI Surge Validates Manufacturing Resilience (Jan 24, 2026)

Record January Expansion Metrics

HSBC Composite PMI rocketed to 59.5—the highest in 11 months—led by manufacturing’s 56.8 print reflecting robust domestic orders and four-month peak export growth despite US tariff overhangs. Services PMI climbed to 59.3, with MSME hiring resuming after December stagnation amid moderated input inflation.

Operational Optimism Peaks Pre-Budget

Business confidence hit three-month highs, forecasting 15% capex acceleration if February 1 announcements deliver on ECLGS 3.0 and infra status for logistics. Capital goods MSMEs reported 25% order book bulges.

Margin Pressures and Strategic Responses

Output price inflation at three-month peak prompts 40% firms to accelerate digital pricing tools. Export resilience via FTAs underscores need for RoDTEP enhancements targeting $100 billion incremental shipments.

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