Manufacturing Pulse - Q3 2025

India’s industrial output just hit a two-year high, yet manufacturing PMI slipped to a 38-month low. At first glance, it looks confusing. But when you zoom out, it tells a very real story from the shop floor.

India’s manufacturing sector is sending mixed signals.

Industrial output rebounded sharply after the festive slowdown.

Manufacturing PMI, however, fell to its lowest level in over three years.

Both signals are correct — and together, they reveal something important. Output data reflects what factories are producing today.

PMI reflects confidence in future orders, hiring, and capacity decisions.

When output rises but confidence softens, it often points to:

• execution of existing backlogs

• cautious order pipelines

• rising pressure on planning and working capital

We analysed recent IIP and PMI trends to understand what this divergence means for manufacturers in the coming quarters — and what leaders should watch beyond headline growth numbers.

Sharing our brief data-backed note for industry peers and operators.

Read Our Complete Report here:

https://drive.google.com/file/d/1KgxW0zILNtCVqXz5UYSboi7CeVgtWE5C/view?usp=sharing