India’s HSBC Manufacturing PMI rose to 55.4 in January 2026 — a two-month high, recovering from December’s two-year low. New orders accelerated, domestic demand was robust, and employment rose at the fastest pace in three months.
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India’s Production Linked Incentive schemes are live across 14 sectors, with cumulative incentive outlay running into tens of thousands of crores. The logic is straightforward: produce more, sell more, unlock the subsidy.
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In January 2026, UNCTAD confirmed what many in Indian manufacturing had hoped: FDI inflows to India surged 73% to $47 billion in 2025, driven largely by investments in manufacturing aimed at integrating India into global supply chains.
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India’s office market hit an all-time high in 2025, with 78.2 million square feet of gross leasing — led by Global Capability Centres, which accounted for 45% of all office absorption. In Bengaluru alone, GCCs leased nearly a third of the national total.
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The RBI repo rate currently sits at 5.25% — the lowest it has been in years. Home loan rates have moved to around 8.10%, and India’s largest banks are actively competing for the home-loan customer. The January-March 2026 quarter is being called one of the most favourable borrowing environments for home buyers in recent memory.
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The year-end numbers are in. India’s residential property market across the top 8 cities showed an 11% overall sales volume decline in 2025 — but here is the number that matters more: the value of homes above ₹1 crore now accounts for nearly half of all residential sales.
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On New Year’s Eve 2025, Blinkit and Zomato together delivered a record 7.5 million orders in a single day — serving 6.3 million customers across India. That is not a statistic about food delivery.
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On 1 February 2026, Finance Minister Nirmala Sitharaman presented her ninth Union Budget. The income tax structure introduced in Budget 2025 — where individuals earning up to ₹12 lakh pay zero income tax, and salaried employees earning up to ₹12.75 lakh pay nothing — was retained in full.
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The Open Network for Digital Commerce continues to grow — seller onboarding is accelerating, GMV is climbing, and the government’s intent to democratise digital commerce is becoming operationally real.
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December data from Indian manufacturing doesn’t point to a production crisis. It points to a clarity gap.
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