The Manufacturing PMI for February 2026 in India rose to 57.5, the highest since September 2025, and was consistent with continued expansion in the manufacturing sector. Factory output, new orders, and employment all support this conclusion of a strong manufacturing sector.

Recent PMI Trends: Last Four Months

The Indian manufacturing industry has been performing well for the last four months. February 2026 saw a PMI of 57.5, which was a significant improvement compared to January 2026's PMI of 55.4 There were small declines in PMI values during December 2025 and November 2025 (55.0 and 56.0, respectively), but since all of these values were above the 50-point mark shows the continual growth of Indian manufacturing industry. Year on year since February 2026 has had a PMI of 56.3 higher than that of February 2025's PMI illustrates an increase in manufacturing momentum over that specific time period.

Calendar Year 2025 Performance

The Calendar Year 2025 reflected sustained growth in India’s manufacturing sector, with PMI consistently above 50. Mid-year months, particularly July and August, recorded the highest readings due to strong domestic demand and export orders. Late 2025 saw minor moderation, but PMI remained in expansion territory, confirming the resilience of India’s industrial base.

Sector-Specific Insights for Steel & Infrastructure

The management of manufacturing PMI's report, which occurred in February 2026, indicates that the steel sector and infrastructure have experienced strong, sector-specific trends in the manufacture of steel related to both output and employment sub-indices, which have both accelerated, indicating increased demand for steel based on construction and infrastructure projects currently being completed. Investment goods, particularly machinery and equipment, have seen the largest increase related to higher orders for infrastructure tenders. Input cost inflation has gone up to a four-month high of 64.9; however, output prices have also moved higher, creating a big picture context for steel pricing strategies as scrap and import pricing pressures have emerged. Supplier deliveries are taking somewhat longer to deliver (sub-index approximating 48), indicating temporary supply chain constraints which generally will support steel premiums within the current steel and construction landscape based on demand that exists in the near term; therefore; it is anticipated that demand for steel and like products will be high as infrastructure projects, tenders, and project execution is presently active.

Forward Outlook

Analysts expect the manufacturing sector to maintain expansion into Q1 2026. While the RBI continues steady rates, rising input costs, and policy measures like PLI and PLI 2.0 for metals may influence steel pricing and tender dynamics. The PMI trends indicate continued infrastructure-driven demand and a favourable environment for machinery and construction materials.