India’s Composite PMI Holds Firm at 58.9 in February, Extending Growth Streak
The HSBC composite PMI for India rose to 58.9 in February, marking a modest increase from January’s 58.4. This reading underscores sustained momentum in both services and manufacturing, with the index staying comfortably above the neutral 50 mark for the ninth consecutive month. The latest data, released March 4, 2026, highlights India’s resilient economic activity into the first quarter of the year.
Table of Contents
Big-Picture Snapshot
Drivers this month
- Services output: +0.3 points
- Manufacturing new orders: +0.2 points
- Employment: steady
Policy pulse
The February composite PMI of 58.9 remains well above the Reserve Bank of India’s comfort zone for expansion, reinforcing the central bank’s stance on steady policy rates.
Market lens
Indian equities saw a mild uptick following the PMI release. Investors interpreted the data as a sign of ongoing economic resilience, with both Nifty and Sensex posting modest gains in early trading. Bond yields held steady, reflecting confidence in the growth outlook without sparking inflation concerns.Foundational Indicators
Drivers this month
- Backlogs of work: unchanged
- Input cost inflation: moderate
- Export orders: stable
Policy pulse
The composite PMI’s persistent strength, with February’s 58.9 following January’s 58.4 and December’s 59.9, signals broad-based expansion. The Reserve Bank of India continues to monitor sectoral trends for any signs of overheating.
Market lens
Currency markets showed limited reaction to the PMI print. The INR remained stable against major peers, as the data aligned with consensus expectations and did not alter the monetary policy outlook.Chart Dynamics
Forward Outlook
Scenario probabilities
- Bullish (30%): PMI rebounds above 60 if services and manufacturing accelerate.
- Base (55%): Index holds between 58 and 60 as current trends persist.
- Bearish (15%): PMI dips below 58 if global demand weakens or cost pressures rise.
Policy pulse
With the composite PMI firmly above 50, the Reserve Bank of India is expected to maintain its current policy stance, focusing on stability and inflation containment.
Market lens
Market participants remain constructive on India’s growth outlook. The sustained PMI expansion supports positive sentiment in equities and credit, while the INR’s stability reflects confidence in the macro environment.Closing Thoughts
Drivers this month
- Services and manufacturing both contributed to expansion
- Employment steady
Policy pulse
The composite PMI’s resilience, with February’s 58.9 extending a nine-month expansion streak, highlights India’s robust economic fundamentals. Policymakers are likely to view the data as confirmation of ongoing recovery without immediate inflation risks.
Market lens
Investors continue to favor Indian assets amid steady PMI prints. The data reinforces confidence in the country’s growth trajectory, supporting flows into equities and corporate bonds.Key Markets Reacting to HSBC composite PMI
India’s composite PMI readings often influence a range of asset classes, from equities to currencies and global indices. The following symbols, verified from Sigmanomics, have shown sensitivity to shifts in India’s economic momentum. Each symbol is linked to its official Sigmanomics page for further details.
- AAPL: Apple’s supply chain exposure to India means robust PMI prints can signal stronger local demand and manufacturing resilience.
- EURUSD: The euro-dollar pair often reacts to global risk sentiment, with Indian PMI strength supporting broader EM optimism.
- BTCUSD: Bitcoin’s price can reflect shifts in risk appetite following major emerging market data releases.
| Year | HSBC Composite PMI (IN) | AAPL (YoY %) |
|---|---|---|
| 2020 | ~42–55 | +80% |
| 2021 | ~48–58 | +34% |
| 2022 | ~54–59 | +3% |
| 2023 | ~56–61 | +48% |
| 2024 | ~57–61 | +48% |
| 2025 | ~58–62 | +49% |
| 2026 YTD | 57.8–58.9 | +12% |
This table highlights the positive correlation between India’s composite PMI and AAPL’s annual performance, reflecting the importance of India’s economic cycle for global tech supply chains.
FAQ
- What is the latest HSBC composite PMI reading for India?
- The February 2026 HSBC composite PMI for India is 58.9, up from January’s 58.4, signaling continued expansion in both services and manufacturing sectors.
- How does the February PMI compare to recent months?
- February’s 58.9 is higher than January’s 58.4 but below the 12-month average of 59.8. The index has remained above 57.8 for the past six months.
- Why is the HSBC composite PMI important for investors?
- The composite PMI is a key gauge of private sector activity. Sustained readings above 50 indicate economic expansion, influencing equity, currency, and bond markets.
India’s composite PMI remains a reliable barometer of economic momentum, with February’s print confirming ongoing expansion.
Updated 3/4/26
This has been drafted with AI assistance and then thoroughly reviewed, refined, and approved by our human editorial team to ensure accuracy, and originality.
- HSBC composite PMI India, Sigmanomics database, accessed 3/4/26
- HSBC, S&P Global, official PMI press releases, February–March 2026
- Reserve Bank of India, monetary policy statements, 2025–2026
February’s composite PMI reading of 58.9 edged up from January’s 58.4, but remains below the 12-month average of 59.8. Over the past six months, the index peaked at 61.9 in September and has since moderated, with values of 61.0 in October, 59.9 in November, and 60.4 in December. The current level reflects a steady expansion, though momentum has softened from last year’s highs.
Compared to February 2025, when the PMI stood at 59.3, the latest figure is marginally lower, indicating a slight cooling but still robust activity. The index has not dipped below 57.8 in the past half-year, underscoring the resilience of India’s private sector output.