Growth in both manufacturing and services sectors in India gained momentum in January, with the HSBC Flash PMI figures revealing faster increases in new orders and output. The HSBC Flash India Composite Output Index surged from 57.8 in December to 59.5 in January, indicating a significant expansion above the long-run series average. Trends improved for manufacturers and service providers, while input cost and output charge inflation rates remained moderate.
The HSBC Flash India PMI by S&P Global highlighted the acceleration in growth for both manufacturing and services. Despite the rise in the manufacturing PMI, January’s figure stayed below the 2025 average, as noted by Pranjul Bhandari, Chief India Economist at HSBC. New orders saw a rapid increase, particularly in domestic orders, with input cost pressures rising more for goods producers than service providers.
Manufacturing companies and service providers experienced quicker growth in output, with similar rates of expansion. The growth in private sector activity was underpinned by a faster expansion in overall new business intakes. Sales were boosted by robust demand conditions and aggressive marketing campaigns, with manufacturers experiencing a faster upturn compared to service providers.
Aggregate international orders saw a significant upturn in January, the strongest in four months, with destinations including Asia, Australia, Europe, Latin America, and the Middle East for Indian goods and services. Hiring in India’s private sector resumed in January after no change in employment in December. Looking ahead, Indian private sector companies expressed optimism for the 12-month business activity outlook.
