India's PMI Set to Stay Strong in FY27, Fueled by IT and Healthcare

According to a Brickwork report, India's PMI is projected to remain in the 57-59 range in FY27, with IT and healthcare leading growth. Manufacturing, driven by autos, metals, and construction materials, will rely on factors like easing input costs and West Asia conflict resolution for recovery.

A recent Brickwork report highlights that India's Purchasing Managers' Index (PMI) is expected to maintain a strong position, hovering between the 57-59 range throughout FY27. Information technology and healthcare have been identified as pivotal growth drivers, while the manufacturing sector's recovery hinges on several determinants, including the stabilization of input costs, resolution of the West Asia conflict, and continued infrastructure investments through government capex and Production-Linked Incentives (PLI).

The report indicates that despite a noted slowdown in manufacturing activity in March, where the PMI slipped to 53.9, the services sector remains resilient, contributing to consumption and job creation. Composite PMIs are showing consistently strong expansion, with manufacturing and services indices reflecting robust demand conditions. Industrial production indicators signal an improvement, backed by increased fiscal spending and better capacity utilization in strategic sectors like steel, cement, and refineries.

As India looks forward to FY27, the outlook is cautiously optimistic. Sustained growth in digital exports, urban consumption, and international trade agreements, particularly with the US and EU, are expected to support the PMI staying firm. Meanwhile, manufacturing revival depends on geopolitical stabilizations and cost management, with IT and healthcare acting as key pillars of economic growth.