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flag India's manufacturing sector grew at its fastest pace in four months in February 2026, fueled by strong domestic demand and rising output, employment, and business confidence, despite slower export growth.

flag In February 2026, India's manufacturing sector grew at its fastest rate in four months, as evidenced by the HSBC India Manufacturing PMI rising from 55.4 to 56.9 due to increased production, improved efficiency, and robust domestic demand. flag Hiring reached its highest level in four months, and output, new orders, and employment all increased. flag Despite improvements in important markets like Asia, Europe, and the U.S., new export orders slowed to their lowest rate in 17 months. flag Selling prices increased at the fastest rate in four months, but input cost inflation stayed modest. flag With a projected 7.6% full-year economic expansion, business confidence increased, reflecting optimism for sustained growth.

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