India's economy: Manufacturing boosts business activity, services slows down
February 2026 brought a mixed bag for India's economy. Services slowed down a bit, but manufacturing picked up speed, and overall business activity hit its highest point in months.
The takeaway? Despite some bumps, things are still looking up.
Manufacturing PMI hits 5-month high
Manufacturing is riding on strong local demand and a rush of new orders—the best since late 2025. Companies even hired more people to handle the workload.
Exports took a dip, though, which kept job gains in check. Still, manufacturers are feeling good about the future thanks to steady demand and marketing initiatives.
Services PMI drops to 2-month low
Services cooled off slightly with the PMI dropping to a two-month low.
Even so, export orders grew at their fastest pace since last August.
On the flip side, rising costs and prices made things tougher for businesses serving customers at home.
Firms remain optimistic about the future
Despite ups and downs between sectors, firms remained optimistic about what's ahead—pointing to strong demand, and the composite PMI also cited tourism, as reasons to stay positive.
The latest numbers suggest that India's economy is still on track for growth this year.