India's manufacturing sector experienced a significant deceleration in June 2026, as the HSBC Manufacturing Purchasing Managers' Index (PMI) fell to 54.2. This figure represents a downward adjustment from the preliminary reading of 54.5 and marks the second-weakest improvement in factory activity observed since the middle of 2022. The report highlights a slowdown in both output and new orders, with their growth rates among the lowest recorded in four years. Furthermore, the expansion of export orders also softened, reaching its weakest pace since the onset of the COVID-19 pandemic.
For freight forwarders and supply chain professionals, this development suggests a potential decrease in demand for outbound logistics services from India, particularly for manufactured goods. The weakening of export orders could lead to reduced container volumes and less pressure on ocean and air freight capacity from Indian ports and airports. Forwarders should monitor upcoming booking trends and adjust their capacity planning and pricing strategies accordingly, anticipating a softer market for Indian exports in the short term. This could also impact inland transportation requirements for factory-to-port movements.