India’s Manufacturing Growth Hits Two-Year Low in December 2025 Amid Slowing Orders and Employment

India’s manufacturing sector recorded its slowest growth in two years in December 2025, driven by easing new orders, production, and employment, according to the latest survey by HSBC. The seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) fell from 56.6 in November to 55.0 in December, marking the lowest reading since December 2023, when the index stood at 54.9. The survey highlighted that new business orders rose at the weakest pace since December 2023, output grew at the slowest rate since October 2022, and employment increased at its slowest in 22 months. Analysts pointed out that subdued sales of certain products and competitive pressures contributed to the overall slowdown. New export orders showed particularly weak growth, rising at the lowest rate in 14 months. Pollyanna De Lima, economics associate director at S&P Global Market Intelligence, noted that only about half of the companies reported higher international sales compared to the 2025 average, with most orders coming from clients in Asia, Europe, and the Middle East. Despite the slowdown, manufacturers remain cautiously optimistic, expecting output to rise in 2026 compared to current levels. However, overall business sentiment fell to its lowest in nearly three-and-a-half years, reflecting concerns about sustaining growth in the face of global uncertainties. Ashwini Vaishnaw Marks Final Bullet Train Tunnel Breakthrough in Palghar, Maharashtra Railway Minister Ashwini Vaishnaw on Friday (January 2, 2026) virtually witnessed the completion of the last 1.5-km mountain tunnel of India’s bullet train project in Palghar district, Maharashtra, from Rail Bhawan in New Delhi. The tunnel, situated between Virar and Boisar stations, is among the longest in the district and signifies a key milestone for the Mumbai-Ahmedabad High Speed Rail corridor. The Railway Ministry noted that this is Maharashtra’s second tunnel breakthrough, following the 5-km underground tunnel between Thane and BKC completed in September 2025. During the virtual event, Minister Vaishnaw celebrated the achievement by chanting “Bharat Mata ki Jai,” marking the progress of the nation’s first high-speed rail initiative. Spanning 508 km and connecting Maharashtra, Gujarat, and Dadra and Nagar Haveli, the Mumbai-Ahmedabad High Speed Rail project is India’s only high-speed rail line designed for trains running at 320 kmph, completing the journey in just 2 hours and 17 minutes. The project is being developed with technical and financial support from the Japanese government and represents a major advancement in India’s rail infrastructure.