Shafaqna English– Survey data released on Monday(3 Aug 2026) indicated that the expansion of India’s manufacturing sector slowed to its weakest pace in roughly five years in July, with sluggish overall demand being the primary factor behind the downturn.
In addition, the survey highlighted that job creation has now decelerated for three consecutive months, providing further evidence that the sector is gradually losing its growth momentum, which could have implications for the broader economy if the trend persists into the coming months.
Official survey results released on Monday showed that the HSBC India Manufacturing PMI, compiled by S&P Global, fell to 53.5 in July, down from June’s 54.2. This marks the index’s lowest point since August 2021 and is marginally beneath the preliminary projection of 53.9.
The decline in the PMI reading, while still remaining above the 50-point threshold that separates expansion from contraction, suggests that the pace of growth is moderating more quickly than previously expected, potentially reflecting broader economic headwinds facing the country.