India's manufacturing (PMI) fell to **50.8** in August 2026, its lowest in five years, signaling a significant slowdown in new orders and output. This also marked the first contraction in manufacturing employment in two-and-a-half years.
50.8
Aug 2026 Manufacturing PMI
Jul 2026: 52.3→50.8
📊 One chart explains it
India Manufacturing PMI Trend
Takeaway: The manufacturing PMI has steadily declined in recent months, reaching a five-year low in August, indicating a significant slowdown in the sector.
⏳ Time Machine
How today’s news fits into the bigger picture
April 2020
PMI Hits All-Time Low
Manufacturing PMI hit an all-time low of 27.4 due to nationwide COVID-19 lockdowns. This represented a severe contraction in industrial activity.
August 2021
PMI at 50.8 During Recovery
The manufacturing PMI was at 50.8, reflecting a cautious recovery phase post the second COVID wave. This is the last time it was this low.
July 2026
PMI at 52.3
Manufacturing PMI stood at 52.3, indicating a moderate but steady expansion. This marked the immediate previous month's performance.
Late 2025/Early 2026
Strong PMI Expansion
PMI consistently hovered around 54-55, signaling strong growth in the manufacturing sector.
Today
India's manufacturing PMI fell to a five-year low of 50.8 in August 2026.
What happens next?
Analysts will closely monitor September's PMI data for signs of recovery or further decline, with a potential impact on industrial policy decisions.
India's manufacturing sector experienced a notable slowdown in August 2026, with the Purchasing Managers' Index (PMI) dropping to **50.8**. This represents the lowest reading in five years and indicates a significant deceleration in new orders and overall factory output. Compounding the concern, manufacturing employment contracted for the first time in **two-and-a-half years**. While a reading above 50 still suggests expansion, the sharp decline points to weakening demand and potential headwinds for the industrial sector, contrasting with the overall robust GDP growth.
💭 If you're wondering…
A PMI reading above 50 indicates expansion in the manufacturing sector, while a reading below 50 suggests contraction. The further from 50, the stronger the change.
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